Classic vs modern: it’s a question of risk

It’s the age-old daydream: pick an imaginary car budget and spend it in your head. Do you buy a brand-new sports car or invest your fictional funds in a characterful classic that’s sure to appreciate?

For those lucky enough not to have to use the power of imagination to do that, there’s obviously a lot more to it in reality, and with either choice you’ll need a specialist such as Peter Best Insurance Services to have your back should the worst happen.

So, from an insurer’s point of view, which represents the bigger risk: new or classic?

“It’s a great question and there are a lot of factors to it,” says Ben Halcro, Peter Best head of sales. “If we are looking to insure a new £1m Ferrari and a classic Ferrari that costs the same amount, the policy difference will largely come down to usage and knowing the customer.

“Modern supercars can almost be driven daily, so chances are they will be out and about most of the year, being seen. That puts their risk of theft or involvement in an accident higher than a classic car that’s going to spend much of its life in a collection and only come out on the odd sunny day. As a rough example, the cost to cover the £1m rarely used classic car could be as much as 50% less than the modern.”

Repairs are a trade-off. While some classic cars will require custom-made parts and specialist craft, modern cars tend to use valuable base materials and advanced electrics. Halcro points out that often the insurance cost of repairing a classic may be higher, but the likelihood of that claim arising is lower.

A lot also comes down to the owners. Peter Best prides itself on tailoring policies to match their specific needs. “We have customers with significant car collections, modern and classic, and in that instance we like to visit if possible because where cars are stored can be a big factor,” adds Halcro. “Some are in warehouses where theft risk is low, others in subterranean facilities where the nature of the location will affect the policy, and there can be flood risks underground. Fire is the biggest worry with classics, so we need to know what they’re stored with, or what’s in the adjacent building that could pose a risk. We try to understand our customers and their intentions.”

For more information on Peter Best Insurance Services, and how they can tailor a policy to suit you and your collection, contact the team at peterbestinsurance.co.uk