Researchers for the rate comparison company looked into the cause of the increasing costs.
A team at Classic Car Insurance has investigated the reason behind these increases and has released a report to explain why premiums are about to soar once more after a short dip to provide relief to vintage vehicle owners.
This type of coverage is traditionally more costly than standard auto policies.
According to the report, because of the type of vehicle that is protected by the policies, classic car insurance coverage is “often more pricey than other types of cover. We find most drivers are quite accepting of this as those who maintain and restore vintage cars tend to have more of an emotional connection to their motor.”
Equally, the cost of the premiums is rising so quickly that the company decided to discover the cause.
• According to the Association of British Insurers (ABI), there was an increase in whiplash claims last year, totaling £2 billion. This increased the average annual auto premiums by £90 across the entire industry. The government has already made proposals for changes in the way that personal injury claims are managed, but the results of this effort won’t be seen for some time.
• Increasing fuel costs are causing the cost of coverage to rise. As the price of gas reaches an all-time high, premiums have risen simultaneously. That said, it has been speculated that this might not impact classic car insurance as heavily because owners of vintage vehicles don’t tend to drive them as much as a regular auto.
• Recent legislation has banned the ability to factor gender into the calculation of premiums. Though young male drivers should see their premiums drop, they aren’t the demographic likely to own vintage vehicles. Those who are will be the ones whose premiums will rise in order to cover the risk that their younger counterparts add to the market.
There are many different factors that can contribute to the final cost of classic car insurance. Make sure to compare quotes from several different companies before making a final choice, to be sure that you have found the best possible price for your coverage.