Owning a classic car is a dream come true for many motor enthusiasts. It can be the culmination of years of hard work, whether you’ve bought the car or restored it from scratch. However, a lot of money and time is poured into maintaining the car, and insurance is part of the upkeep. A report carried out by The Association of British Insurers has stated that insurance premium tax is on the rise, so it’s important to know how to reduce costs.
There are lots of ways you can cut insurance costs, and here are seven tips on how you can do it effectively.
1. Take your time to look around
Shopping around is an obvious thing to do, but you shouldn’t accept the first quote you’re given if you don’t feel comfortable. Never assume that one insurance company is exactly like the other as you may be able to get a better deal.
2. Buy online
Due to it being an automated process, buying car insurance online can be cheaper. An online quote could potentially be 5% cheaper than dealing with an insurer face to face.
3. Log less miles
There is the temptation to drive your classic car around everywhere, but picking the right moments can lead to saving money on insurance. A reduction in mileage means there’s less risk involved and insurance companies will pick up on that fact. Always be honest with your yearly mileage, as you don’t want to run the risk of it affecting a claim.
4. Join a classic car club
If you own a classic car then odds are you will be part of a club. If not then you should consider joining one to take advantage of member benefits. These include premium rates and insurance schemes. This means you’ll also benefit from the advice of other members and they could put you in touch with reputable insurance companies.
5. Don’t overvalue the car
Overvaluing a classic car when applying for an insurance quote could lead to an increase on the premium price. Most classic cars tend to hold their value, but you should be cautious in how you rate one.