The insurance market has become increasingly volatile in recent years, with the average motorist now paying £921 per year for cover.
Classic car owners generally pay less for insurance on account of them being statistically less likely to be involved in accidents and make claims. Insurers recognise that this is due to classic car drivers tending to take greater pride in their vehicle than owners of more widely available vehicles and common place vehicles and classic car insurance quotes therefore tend to be lower.
However, this doesn’t mean that the classic car insurance is immune from changes over the rest of the industry.
What has changed and why?
The global recession has left people out of work and unable to sustain their previous standards of living. Given that car insurance is such a significant expense, an increasing number of people have therefore been attempting to get away with driving without it.
Not only are these people reducing the total income of insurers by not paying their premiums, they are also forcing insurance companies to cover the costs of any accidents that they become involved in. The MIB (Motor Insurers Bureau) claims that this is costing the industry £500 million every single year.
This additional expenditure and potentially lost income is ultimate being passed onto law abiding motorists who are recouping the insurer’s loss by paying higher basic premiums. Many motorists are also receiving a much reduced offering in their basic insurance package, with additional features such as legal assistance and breakdown cover which previously came as standard with many policies being amongst the first to face the chop.
Many of the increasingly stringent insurers are also becoming less generous in terms of the policy terms and conditions, with tales of many loopholes being utilised by the insurers in order to reduce their total financial obligation whenever a claim is made.
In the case of classic vehicle owners, insurers are taking advantage of a rule over the exact technical specification of the car. Some insurers are claiming that the policy holder misled them if a classic vehicle is fitted with parts which were not part of the original design specification, stating that a modification has been made and that they have not been informed. This is enough justification for any insurers to legally refuse to pay out when a claim is made for any incidents involving the vehicle.
What counts as a modification?
A modification is basically anything which results in the vehicle deviating from its original design specification. With conventional vehicles this normally revolves around performance enhancing or aesthetic changes such as the addition of alloy wheels or spoilers.
However, with classic vehicles this can include any replacement parts which are fitted to the vehicle in order for repairs to be made. This is due to the fact that the required parts may well be harder to source for these less common vehicles. It is therefore important to make sure that you only fit your vehicle with parts that are the same or the equivalent to the ones that they are replacing and it is certainly worth paying a little bit more in order to ensure this.
What if my vehicle has already been fitted with non-authentic parts?
In the event that you have had your vehicle equipped with components that were not part of the original manufacturer design specification, it is strongly recommended that you inform the insurers immediately so as to avoid any potential difficulties. Unless these modifications have been done for performance or aesthetically enhancing reasons they are unlikely to result in higher premiums.
In fact it is recommended that you inform your insurer in the event of even miniscule modifications being made to the vehicle; even if you replace the gearstick. This is unlikely to be used as grounds to invalidate any claims, but at least you would be covered you back against any protests which could be made by the insurer.