Classic Cars – Frequently Asked Questions
6th August 2025
For most people who own a classic car, it’s about more than just a hobby. It’s about passion, a lifestyle, and for many, a cherished investment.
From the nostalgic charm of a vintage Mini Cooper, to the timeless elegance of an E-Type Jaguar, classic cars have always held a special place in the hearts of the enthusiasts lucky enough to own one.
When it comes to insuring these classic cars, the insurance isn’t quite the same as standard motor cover and there are some unique considerations that every classic car owner should understand.
Below we’ve compiled some of the most frequently asked questions that we receive about ownership and insurance. Whether you’ve been collecting classic cars for years, or are thinking about purchasing your first one, hopefully there will be something to help you.
First things first, what is a classic car?
Confusingly, there are different definitions of what a classic car is.
According to the DVLA, a car is considered to be a classic car if it is 40 years old or more. At this point, a car is exempt from paying road tax and from requiring MOT testing (if there have been no substantial changes to the vehicle in the last 30 years).
Ask an insurance company though, and many of them would consider a car 20 to 25 years old or older to be a potential classic car. Along with the age of the vehicle, they would also take into account rarity of the model, condition and originality, and historical significance.
Car enthusiasts may have a different definition again, with some cars from the 1990s and early 2000s being viewed as ‘modern classics’.
Do I need to pay road tax on a classic car?
As mentioned above, the DVLA consider a car to be a classic if it is 40 years old or more. If it was built before 1st January 1985, or was first registered before 8th January 1985 (if you don’t have the build date), you will be entitled to apply to put your vehicle into the ‘historic tax class’.
Please note that this doesn’t just happen automatically as your car reaches the 40-year threshold, so it is important that you don’t just stop paying! Applications can be made in person at any Post Office that deals with vehicle tax, and you will need to provide your V5C (log book), a completed V10 form, and your MOT certificate (if your vehicle still requires one).
Although the cost of the tax if £0, it is still your responsibility to tax the vehicle annually. It is also still important that you insure the vehicle and keep it roadworthy.
Does a classic car need an MOT?
If your car was first registered more than 40 years ago and has had no substantial changes in the last 30 years you will not need an MOT.
A substantial change includes modifications such as replacing the chassis, body, axles or engine, or altering the way the vehicle works (such as converting it from petrol to electric). If you are at all unsure, it is always best to check the DVLA’s current MOT exemption guidance. Unlike with the road tax, you do not have to apply for an MOT exemption, as it will be automatically applied once your vehicle qualifies.
Are classic cars environmentally friendly?
This may seem like a no brainer, since the engines of older cars tend to be less fuel efficient and have higher emissions when compared to more modern cars – so surely the answer is no. It does depend on how you define and measure the environmental impact though.
If you purchase a classic car, since it is already built, there have been no new resources used to manufacture it. Keeping a car on the road for decades also avoids the carbon footprint associated with the production of a new car. The term for this is ‘embodied energy conservation’, basically reusing rather than replacing.
The owners of classic cars also tend to focus on repairing and restoring rather than discarding, which reduces waste.
Classic cars also tend to be driven less frequently, often being saved for sunny days, or taken to car shows. This obviously means lower total emissions compared to vehicles which are used on a daily basis.
How can I maintain my classic car?
The storage and protection of your treasured vehicle is obviously crucially important. Wherever possible, as well as ensuring that your car is stored in a dry and well-ventilated garage, you will also want to use the appropriate products to prevent rust on the bodywork, as well as caring for the interior to ensure longevity of the leather or vinyl. It will often be a condition of your car insurance that it be stored in a garage or secure location when it is not being used.
There are also regular maintenance checks which should be carried out at certain mileage points – you can find the latest guidance on this online. The checklist includes things like oil and filter changes, flushing and refilling your coolant system, replacing brake fluid, and checking your tyres for cracks and pressure. All these checks should be routinely done to help maintain your classic car, regardless of whether it is driven regularly, or stored for long periods of time.
Depending on what type of classic car you own, there are many classic car clubs who would be happy not only to offer advice, but who also host regular events where you can learn more about, or even display your own classic car. From technical support to access to parts, being part of a classic car club can be really helpful, especially if you are a new owner. Joining a classic car club may also help you to receive a discount on your classic car insurance.
What type of insurance do I need for my classic car?
Classic car insurance is specifically tailored to cover older vehicles which are well maintained and not typically used for daily commuting. The insurance often includes agreed value cover, limited mileage policies and cover for attending events like car shows.
What is an agreed value policy?
Unlike with standard car insurance where insurers use the market value for your vehicle, with a classic car you and the insurer will agree on the value of the car at the start of the policy. If your car is stolen or written off, this ensures that you receive the full agreed amount for your classic car.
Insurers will require you to provide quality photographs of the exterior, engine bay, interior and any modifications or unique features of your classic car before an agreed value can be determined. Along with the usual service history and records of MOT/maintenance, if you have proof of purchase and receipts for any restoration work, parts and upgrades, these can also be submitted.
Getting a professional valuation from a recognised independent specialist or classic car club can be helpful, as can finding examples of similar cars for sale or at auction which support your valuation.
Due to the fact that classic car values can rise quickly, we would advise that you review your agreed value on an annual basis to check that it still reflects the current market.
Will my mileage be limited with a classic car insurance policy?
As classic cars tend to be used for leisure, attending shows, or weekend drives when the weather is good (so not as frequently as you may like in the UK), policies will tend to have a limit on the annual mileage between 1,000 and 5,000 miles. Classic car insurance cover is typically for social, domestic, and pleasure use and doesn’t include commuting.
Are modifications covered under classic car insurance?
It is important that you declare any changes to the original factory specification of your classic car to your insurers. This applies regardless of whether they are cosmetic, performance related, such as engine swapping or tuning, or upgrades relating to safety, such as brake upgrades.
Modifications can not only affect the cost of your insurance premium if they increase the risk profile or value of the car, but they may even mean that certain insurers are not able to offer cover at all under their classic policy.
If the modifications that you make to your car increase the value, you need to make sure that you speak to your insurers to update the agreed value. This will ensure that you have full cover in the event of a total loss.
Do I need to own a primary vehicle for daily use?
Since classic car insurance is designed to cover vehicles which aren’t used for daily commuting, are driven for leisure and special occasions only, and have limited annual mileage, in most cases insurers will require you to have a separate (modern) vehicle for everyday use. Insurers may refer to this as a ‘daily driver’.
Whilst there are some specialist insurers who may be able to make exceptions to this condition, that may involve having to switch to a standard car insurance policy and losing some of the benefits of classic cover, such as agreed value and coverage for events.
At COHIBL, our Private Clients team have years of experience arranging insurance cover for classic cars. Owners can relax knowing that their policy has been specifically chosen to suit their needs, and they can concentrate on enjoying their classic vehicles.
If you there is anything that we haven’t covered, or you would like our help covering your classic car, get in touch with our Private Clients Account Executive, Rebecca White, on 0161 833 5603 or email [email protected]