If your car is more than 20 years old and worth at least £15,000, it is deemed to be a classic car by the UK tax office.
This means that you might qualify for cheaper car insurance, because many classic cars tend to be very carefully maintained but driven less frequently than modern motors, so it is assumed that a claim on the policy is less probable.
Term and conditions vary between insurers, but as a general rule if you opt for a limited mileage policy this should help to keep costs down. Also, make sure you get the value of the vehicle agreed and guaranteed when you first insure it, and bear in mind that your vintage vehicle could possibly go up in value over the years.
AA Insurance offers insurance for classic cars, if the driver is aged over 25 and the vehicle is more than 15-years-old and clocks up fewer than 7,500 miles per year.
With this cover, you can choose limited annual mileage of 1,500, 3,000, 5,000 or 7,500 miles, and if you are a member of an established classic car club you could be eligible for a discount, but you will need to produce a copy your membership card.
The policy also offers agreed classic car value where available, free collector's car valuation service and unlimited windscreen and window damage cover, subject to an excess of £50.
Six named drivers including the policy holder can be listed on the insurance document, but there are some differences between regular insurance and insurance for classic cars, for example drivers of the older vehicles may not get a no claims discount.