For many enthusiasts, classic cars are more than just vehicles, they are prized possessions, pieces of history, and cultural icons. But what exactly qualifies as a classic? From a road fund licence perspective, the term applies to vehicles 40 years or older. However, rarity, historical significance, design, originality, condition, and cultural impact all play a role in a car’s recognition as a classic.
According to the Driver and Vehicle Licensing Agency (DVLA) data from late 2023, there were 338,697 vehicles over 40 years old registered in the UK. Of these, roughly 12% were declared off-road, leaving almost 298,000 still in regular or occasional use. This number highlights the scale of the UK’s passion for motoring heritage and the growing need for tailored protection.
The insurance challenge
Arranging suitable insurance cover is often a source of frustration for classic car owners. Some policies restrict when and how vehicles can be used, limiting enjoyment and flexibility. Valuation is another sticking point: while many insurers only offer “market value” settlements, this can leave owners exposed. Classic car prices fluctuate rapidly, with some appreciating faster than others. In the event of an accident, repairs could be capped by an insurer’s definition of value, leaving owners out of pocket.
Repair itself is a challenge. Not all garages have the expertise to restore or maintain historic vehicles. Finding the right specialist can be difficult, and restrictive policies sometimes prevent owners from using their preferred experts.
Storage requirements add another layer of complexity. Certain insurers insist on garaging, with limited tolerance for professional storage solutions. For collectors and urban owners alike, this lack of flexibility can be a barrier.
Recent DVLA rule changes
Encouragingly, change is underway. Following consultation with owners’ clubs, the DVLA has announced updated policies to modernise how vehicles are recorded after repair, restoration, or modification. From 26 August 2025, like-for-like restorations will no longer need to be reported, and more modified vehicles (including electric conversions) will be able to retain their original identities. This reform is a positive step for enthusiasts, making it easier to keep classics on the road while preserving their heritage.
Tailored solutions for classic car owners
To overcome the limitations of standard cover, classic car owners should use specialist insurance designed around their unique needs. The right policy can provide:
- Agreed value cover – ensuring clarity and fair compensation in the event of loss.
- Freedom of choice – with insurers recommending experts but leaving final repair decisions to the owner.
- Mileage-based pricing – with rates adjusted to reflect actual use.
- Flexible storage arrangements – recognising that not every vehicle can be garaged at home.
- Low excess options – even on high-value vehicles.
- Open driving extensions – enabling multiple qualified drivers to enjoy the car.
- Collector discounts – for multi-car ownership.
With the right cover, classic car ownership becomes less about worry and more about enjoyment. By understanding the challenges and choosing carefully, enthusiasts can protect not only their vehicles but also the stories, history, and passion they represent.
Contact us today and let us find a policy which fits your classic car needs.
Chris Tully
Fine Art & Private Clients Director
