Things to consider when insuring a used car

When purchasing the car insurance for your used vehicle there are a few things to consider. Here, we’ve listed the main factors to think about when insuring your used car, whether it is a few years old, or classified as a vintage, classic or veteran car.

veteran car, UK
Photo: Dominic’s pics

Firstly there are two different types of used cars. These can be classified as ordinary and extraordinary. An ordinary car could be a used car that is only a few years old. An extraordinary car could be a vintage car, veteran or classic car.They are called this because of their rarity or age. In general here is how extraordinary cars are classified; classic cars are generally those built after WW2 up until 1973. Vintage cars are vehicles built between 1919 up to WW2 and Veteran cars are those vehicles that have been built up to 1918.Purchasing car insurance for both types of used cars is mandatory, and of course offers peace of mind. It is important to consider and understand these factors when purchasing insurance for your used vehicle:

  • Agreed value-This is the value placed on the car if it is lost or stolen. It’s an amount that you and the insurance company ‘agrees’ on. This is not the market value, which refers to the worth of the car in its current condition on the open market. The market value is generally less than the agreed value as most cars depreciate in value over time with the exception of vintage cars and veteran cars which in some cases depending on how rare they are can increase in value over time.

So while agreed value could seem like the best option should anything happen to your vehicle, the premiums will be much higher so you need to think about whether or not it’s worth it.

  • Conditions of the policy- You need to carefully consider all of the options that are attached to the car insurance policy you are thinking about. Some insurers will require quotes for repairs on your vehicle or even have a clause that requires them to approve the repairer who provides quotes on your car.

If it is important to you who repairs your car should there be an accident, you may want to think even more carefully about who you have your car insured with as some will not allow you to choose, or as mentioned earlier require the repairer to be approved.

  • Speciality insurance companies- There are insurance companies that specialise in vintage, veteran or classic car insurance. They will be able to offer you more options for this type of vehicle.

Most people however will be insuring a car that is a few years old and most insurance companies offer a number of insurance options for used car owners. If your car is only a few years old, you need to consider the cost of replacing it should you have an accident or if it is stolen.

Car Accident
Photo: juggernautco

As mentioned earlier, you can save money by covering your car with its market value, but if anything was to happen you may not be able to buy a car of comparable value with the payout given by the insurance company. It may be worth then going with an agreed value policy for your car so that you would be able to get a comparable vehicle of similar quality, however this will incur higher premiums.

Choosing the right insurance for your used car doesn’t have to be a difficult task. It’s just a matter of gathering a number of car insurance quotes and deciding on which one offers you the best cover for the price you are willing to pay for your premium.

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