With classic cars continuing to be both a passionate hobby and a source of investment for thousands across the UK, the classic car insurance industry has risen in prominence throughout the last two decades. Like most industries, however, classic car insurance has had to navigate numerous difficult circumstances over the last few years, from Brexit to the COVID-19 pandemic and, most recently, the cost of living crisis.
Our research has gathered the most prominent classic car insurance statistics for 2023, to include information on people’s averagepremiums, the size of the classic car insurance industry, as well as demographic breakdowns such as age, region, and car type. By looking at past data and future projections, we were able to document how the industry has evolved over time and make predictions about the future of classic car insurance in the UK.
The classic car insurance market was worth £717 million in 2022. This figure is expected to rise by 1.7% in 2023, taking the total market value to nearly £730 million
The industry peak occurred in 2019 when it was valued at £747 million
If 2023 predictions are correct, the classic car insurance market size will decrease in value by over 2% from 2019 to 2023
Drivers aged 17-20 pay an average of £7,600 per year for classic car insurance. This is 429% more than any other age group
Women pay £491 for classic car insurance on average – 25% more than men
Drivers in the South West pay the least on average for classic car insurance in the UK (£279 per year)
Classic car insurance is a specifically designed type of insurance aimed at older cars typically used as secondary vehicles for leisure purposes. HMRC states that, for a car to be considered classic, it must be at least 15 years old and hold a minimum value of £15,000.
Classic car insurance tends to be cheaper than normal car insurance, as insurers expect classic cars to be driven less and be better maintained by owners. As such, classic car insurance typically covers customers for less mileage than a standard insurance plan, with a pre-mileage cap usually in place.
Like standard car insurance, classic cars can be covered by various different types of car insurance plans including third-party, third-party fire and theft, or comprehensive insurance. Some drivers will also opt to enhance their coverage with add-ons like breakdown cover.
There are a few other common features of classic car insurance:
“Agreed value” is a pre-agreed deal between the customer and insurer on the valuation of a classic car. In the event of a claim, the customer will be insured for the overall agreed value, regardless of whether the market value of the car has increased or diminished since the time of the initial agreement.
Laid-up cover provides fire and theft cover on cars that have been taken off the road for a period of time. This type of cover is popular in classic car insurance, as many owners opt to take their cars off the road during the winter months.
Additionally, as classic cars often require longer or regular restoration than standard vehicles, laid-up cover allows these cars to remain insured at a reduced cost while they’re off the road.
Recent UK classic car insurance statistics found that the classic car insurance market was worth £712.2 million in 2022. This figure is expected to rise by around 1.7% in 2023, bringing the total market value of the industry to £729.5 million – the highest figure recorded since 2019.
While this represents a significant annual rise, the industry remains some way off its 2019 peak, when the market was found to be worth over £747 million.
After a continued rise from 2013 to 2019, the industry endured a market value decline of over £70 million (-9%) between 2019 and 2021, before increasing steadily from 2022 onwards. This suggests that the classic car insurance market may have been impacted by people neglecting to renew their insurance in the wake of travel restrictions and financial uncertainty during the COVID-19 pandemic.
If 2023 predictions are correct, the classic car insurance market will decrease in value by over 2% from 2019 to 2023. These figures would also mean that the industry has suffered an average annual decline of 0.1% between 2018 and 2023 – a larger decline than the wider UK economy over the same period.
To determine the average cost of classic car insurance in the UK, we looked at the average insurance price for 10 of the most popular classic car brands across UK regions, brands, and demographics.
Based on our findings, we can reveal that the average cost of classic car insurance in the UK is approximately £401 per year in 2023.
The latest UK classic car insurance statistics found that the youngest drivers paid by far the highest premiums for classic car insurance. With average annual premiums of more than £7,600 per year, drivers aged 17-20 are likely to pay an astonishing 429% more than any other age group.
|Age group||Average lowest annual premium|
Despite the immediate drop in premiums after the lowest age group, the next youngest age groups also pay more than the combined average for their classic car insurance. There is a 26% decrease in premiums between the ages of 21-25 (£1,441) and 26-30 (£1,072) – the second and third most expensive categories.
Drivers aged 31-35 are the youngest group to pay less than £1,000 on average for their classic car insurance, with their average cost of £634 around 41% less than drivers aged 26-30.
Prices continue to reduce by between 8% and 30% for the next four age groups until we reach the age of 51-55 (£282). From here, prices fluctuate before reaching their lowest point at age 66-70, with this group paying around £206 per year, on average.
There is a sharp rise between the oldest two age groups, with those aged 81 and over (£399) paying 45% more than those aged 76-80 (£276). With premiums of almost £400, those aged 81 and above paid 93% more than 66-70-year-olds, but 95% less than drivers aged 17-20.
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London was found to be the region that paid the most for classic car insurance, with an average annual cost of £708 – 49% more than any other region. When looking at the rest of the UK, London's prices are clearly an outlier, with no other region paying more than £500.
Following London in first place is Yorkshire and the Humber, which has an average annual premium of £475. This means drivers in this region pay 11% more on average than drivers in the North West, and 25% more than in the East Midlands.
The South West had the lowest fees for classic car insurance, with its annual cost of £279 making it the only UK region where drivers pay less than £300 on average. This means that drivers in the South West pay around 60% less for classic car insurance than London drivers, and 41% less than drivers in Yorkshire and the Humber.
Outside of England, Northern Ireland has the highest annual premiums (£361), followed by Scotland (£345). Wales paid the least for classic car insurance, with average annual premiums of £316 – 12% lower than Northern Ireland and 8% lower than Scotland.
The most recent UK classic car insurance report found that women pay around £491 per year for classic car insurance. This is 25% more than men who were found to pay £370, on average.
This is a direct contrast to standard car insurance prices which found women pay around 17% less on average for normal car insurance, according to the latest UK car insurance statistics.
A 2020 report commissioned by the Historic Endurance Rallying Organisation and Endurance Rally Association (HERO-ERA) estimated that the UK classic car market generates £18.7 billion per year in turnover, with a further £2.9 billion in tax revenues.
Of this revenue, it was estimated that classic car rentals were responsible for around 14% of the overall industry turnover (£272 million), with other key income sources including:
Owners' clubs generated £111 million in turnover (6% of the industry total)
Museums generated £62 million – 3% of industry turnover
A further £59 million (3%) was spent on magazines, with £50 million (2%) spent on tools, and £10 million (0.5%) on clothes and memorabilia.
The same report estimated that there were approximately 1.6 million classic cars in the UK, totalling at a combined value of £8.7 billion. This figure accounted for 69% of the overall classic vehicle industry, which was valued at £12.6 billion.
The latest classic car insurance statistics found that Porsche is the manufacturer generating the most revenue in the UK, with the combined value of its classic cars worth nearly £1.2 billion.
This figure was 61% higher than any other brand and accounted for 14% of the overall industry revenue. With just under 44,000 classic Porsches in the UK, the German manufacturer was found to have an average classic car valuation of £27,010.
Porsche was followed by Jaguar (£723.3 million) which, despite having around 4,000 (10%) more classic cars than Porsche, had a considerably lower average car value of £15,136.
Despite having the highest average value of any classic car manufacturer in the top 10 (£92,510), third-placed Aston Martin had a significantly lower total of classic cars (6,622), meaning its overall revenue was 14% lower than Jaguar and 47% lower than Porsche.
Conversely, while Ford has a total of 175,553 classic cars in the UK – 74% higher than any other brand in the top 10 – their average classic car price is just under £2,000. This means that Ford’s overall revenue, £332.6 billion, is the eighth-highest of the top 10 classic car brands.
Outside of the top 10, Bugatti has the highest average value, with its 113 classic cars in the UK found to be worth just under £575,000 on average – or £76.5 million combined.
The latest UK classic car insurance stats found that Porsche classic cars generate the most revenue in the UK, with the total stock of its 911 model worth nearly £911 million.
This figure represents a 146% increase on the second most profitable classic car, the Jaguar E Type, and is more than the combined value of the final six cars on the list, which are:
Aston Martin DB5
Land Rover Discovery
Jaguar XJ Series
The Jaguar E Type has a combined stock worth of £370.8 million, which is almost two and a half times less than the Porsche 911. Despite the E Type having an average valuation of more than double that of the 911 (£90,000 vs £39,551), there are only 4,120 E Types in existence so its combined value was far less.
Aston Martin’s DB5 is the most valuable classic car on the list, with the model costing around £700,000 – more than seven times the figure of any other car in the top 10. Despite this, the DB5 only generated the sixth-highest combined value, with the total number of classic cars (210) around 99% fewer than the Porsche 911.
Similarly, although the Austin/Rover Mini has the highest number of classic cars in existence within the top 10 (56,650), its average value of just £5,459 meant that its combined worth (£309.2 million) was 66% less than that of the Porsche 911.
We analysed the insurance premiums of the 10 most popular classic car brands and can reveal Ferrari has the highest classic car insurance premiums, on average. Stats show that the famous Italian car brand has an average annual total of £829 – around 36% higher than any other car manufacturer.
Bentley followed behind in second, with average annual insurance premiums of £607 – 35% more than the third costliest brand, BMW (£450). Half (50%) of the brands in the top 10 have classic car insurance costs between £300 and £400, with the cheapest two brands, Jaguar and MG, costing £217 and £91 respectively.
As the only brand with average costs below £100, MG was by far the cheapest brand for classic car insurance. To put this in perspective, MG’s annual figures are around 58% less than Jaguar's (£217) and 89% less than Ferrari's.
Recent UK classic car insurance statistics show that the West Midlands is the UK’s classic car hotspot. The region is estimated to have a share of 9.6% of classic cars, which is estimated to generate around £1.8 billion in turnover and £838 million in gross added value (GVA).
Yorkshire had the second biggest classic car market (8.2%) with a turnover of around £1.49 billion – 15% lower than the West Midlands. Lancashire was the only other region with an estimated turnover above £1 billion, with its overall market value accounting for 5.6% of the UK classic car industry.
The remainder of the top 10 is comprised entirely of southern regions, with fourth-placed London having the highest market share (5.5%). With an estimated turnover of £961 million, London’s classic car turnover was thought to be around 45% lower than the West Midlands and 36% lower than Yorkshire.
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