When classic car owners take out cover for their treasured collectibles, not all of them have a clear understanding of how the pricing and the premiums work.

Luckily, we can clear up that confusion for you! Here, we break down the most common factors that play a role in determining your classic car insurance premium costs.

Key factors that affect your classic car insurance premium

  • The driver’s age. Older drivers are considered to have more experience on the road and are generally more likely to avoid road accidents and serious crashes than younger drivers, which means they typically pay less premium.
  • The driver’s sex. Women are involved in fewer accidents than men on average, which is why they generally pay a less expensive premium for their car cover.
  • Your vehicle’s make and model. Insurance premium vary between different classic cars. Please note that high-powered vehicles can incur higher premium rates, as their owners are commonly associated with fast, risky driving.
  • Your vehicle’s place of residence. The safer the vehicle’s enclosure, the lower the risk of theft or damage. Therefore, where you park your car overnight – in a garage, carport or in the street – affects your premium as well.
  • Where you live. Your postcode does play a part in the pricing decision. As the rule of thumb, the higher the crime rate in your suburb, the riskier you are to insure.
  • What you use your car for. Whether your classic vehicle sees private or business use, your insurer will work that circumstance into the cost of your premium.
  • The amount of time you spend on the road. The more kilometres you tally each year on your classic car’s odometer, the higher the premium you’ll end up paying.
  • Your driving record. On the other hand, the shorter your history of traffic offences, accident involvement and insurance claim, the less premium you’ll pay.
  • Whether your vehicle is equipped with a security device. If you’ve installed a security device like a burglary alarm or an immobiliser in your classic car, the cost of your premium will drop, as your car will present less risk of a break-in or a theft.

When you buy a classic car insurance policy in Australia, chances are you’ll want your vehicle insured for an agreed value. This lets you include extras like restoration or improvement work, which wouldn’t normally be factored into your car’s standard market value.

However, insuring above the market value of the vehicle may result in a more expensive premium. Additionally, it typically reverts to market value insurance upon renewal each year.

Further to the above, make sure you’re fully across your policy’s terms and conditions, which are listed in the Product Disclosure Statement (PDS).