Rally and classic car insurance 

If you have ever shopped around for car insurance quotes you’ll know that the market is highly competitive with more than 100 insurers to choose from. However, when it comes to finding car insurance for rally cars or classic vehicles you may find that your options are more limited if you want a policy that truly reflects your needs. 

Here we look at both rally car insurance and classic car insurance, explaining what to look for in a policy and how to keep premiums affordable. 

What is rally car insurance? 

Many conventional car insurance companies will not cover rally cars because they are so unique – they are expensive to repair or replace; and they are performance vehicles that are likely to be driven at fast speeds. As they take part in competitions in which they are driven to their limits and pick up damages fairly frequently, most insurance companies deem them too much of a risk to cover. 

However, a number of specialist insurance companies will provide rally car insurance to protect the vehicle while it is being driven on the public highway, including travelling to and from events and between rally stages. Cover is not usually available for the rally events themselves. 

Some specialists outline that because rally car drivers are among the most skilled on the road, this should be reflected in the premiums they receive. They also offer a number of policy features tailored towards rally car drivers including: 

- European cover: As many rally stages take place abroad, some insurance companies will cover your vehicle within the EU for a set number of days each year.  

- Left-hand drive cover: Protection for your vehicle if it is fitted with left-hand drive.  

- Limited mileage discounts: The fewer miles you drive, the lower your premiums will be.  

- Modifications covered: Like-for-like cover for modifications in the event of an accident – cover for converted and upgraded cars may also be available. 

- Owners’ club discounts: Joining an owners’ or manufacturers’ club could earn a discount from a specialist insurer – potentially in the region of 15 per cent off your premiums. 

- Storage and transit: Protection against accidental damage for your vehicle while it is being transported – including loading and unloading; and also while stored in a locked garage or workshop. 

What about classic car insurance? 

Car insurance companies apply different criteria to classic cars because their values can be difficult to determine and their parts more complex to replace/repair. To assess premiums they divide classic cars into the following groups: 

- Veterans: Vehicles manufactured up to December 1904. 

- Edwardian: All cars manufactured from January 1905-December 1918. 

- Vintage: Any cars produced from December 1918-1933. 

- Classics: This usually refers to cars manufactured pre-1975. 

- Cherished: Collectible or rare cars that are five- to 10 years old. 

Many conventional insurance companies have teams in place to deal with classic cars, but there are also a number of specialists that are worth considering as they may offer policy features that are tailored for classic car owners. As with rally car insurance, these can include owners’ and manufacturers’ club discounts and limited mileage discounts; as well as: 

- Agreed/increasing valuations: If you suffer a total loss your vehicle will normally be subject to a market valuation. However, with an agreed valuation you know you will receive a fixed payout as long as the amount is guaranteed. Some increasing valuations are available for cars that increase in value the older they become.  

- Hire cover: Protection if you plan to rent your classic car for events such as weddings. 

- Laid-up insurance: If your classic car is a project, laid-up insurance protects it from theft and mishaps. 

- Track/rally cover: Should you include your classic car in a special event you may be able to arrange cover depending on the circumstances. 

How can you save money on rally and classic car insurance? 

Here are some additional tips to help reduce your car insurance premiums: 

- Increase security: Installing devices such as insurer-approved alarms, immobilisers and trackers can help reduce your premiums. 

- Raise your voluntary excess: The excess is the amount you will pay towards any claim made. Increasing the excess will reduce your premium but this should only be set to a level you can comfortably afford.  

- Drive safely: Building up a no-claims discount could save you as much as 60% off your premiums after for or more years.  

- Paying annually: Pay premiums annually instead of monthly to avoid interest charges. 

- Park safely: If you have access to a locked garage you should park there overnight as this will reduce your premiums.