The rising value of classic cars is leaving owners dangerously underinsured, according to the British Insurance Brokers’ Association (BIBA).
Analysis by the Historic Automobile Group shows that the values of some classic cars have risen substantially, yet owners aren’t updating their insurance. It means that if they need to make a claim they’d only receive a fraction of the car’s real cost.
The problem isn’t just confined to the ‘blue chip’ classics, like Ferraris or Jaguars, either, with more humble models such as Ford’s Escorts also rising in value.
Adrian Flux Insurance Services – one of the largest specialist classic car brokers in the UK – has written to all its policy holders about the issue of inadequate cover. It found that some of the classic cars on its books had almost doubled in value since policies began.
One owner, Darren Campbell, from Surrey, bought his classic 1970 Porsche 911S nearly 20 years ago. It had been insured for £45,000 for the past few years, but it’s now worth more than £80,000. Darren said: “If you’ve had it for as long as I have, it’s easy to take your eye off the ball.”