How do I value my classic car?
Knowing the true value of your classic car is one of the most important parts of insuring it correctly. Unlike modern vehicles, classic cars don’t always follow predictable depreciation patterns, and their worth can vary significantly depending on condition, rarity and demand.
Many owners underestimate or overestimate their vehicle’s value, which can lead to problems if a claim is ever made. Insuring for too little could leave you out of pocket, while insuring for too much may mean paying higher premiums than necessary.
In this guide, we’ll explain how classic cars are valued, what factors influence their worth, and how trusted insurers like Heritage help owners ensure their vehicles are covered for the right amount.
Why valuing a classic car is different to a modern car
Modern cars are usually insured based on their market value, which reflects what the vehicle would be worth immediately before a loss. This value is often easy to determine because there is a large volume of comparable vehicles for sale.
Classic cars are different. Their value is influenced by far more than age and mileage, and two examples of the same model can be worth vastly different amounts. Key differences include:
- Condition varies widely between vehicles
- Restoration quality can significantly affect value
- Rarity and originality play a major role
- Market demand can fluctuate
Because of this, specialist insurers like Heritage will look to take a more tailored approach when valuing classic vehicles to ensure you get exactly the right cover.
What factors affect the value of a classic car?
There are several key factors which combine to determine how much a classic car is worth.
Condition and restoration quality
Condition is one of the biggest drivers of value. A fully restored vehicle in excellent condition will typically be worth far more than a similar model requiring significant work.
The quality of any restoration matters too. Professional, well-documented restorations generally add more value than poorly executed or undocumented work.
Rarity and desirability
Some classics are valuable because they are rare, while others are sought after due to strong enthusiast appeal. Limited production numbers, special editions and historically significant models often command higher prices, with desirability changing over time as tastes and trends evolve.
Originality
Original features such as matching numbers, factory paint colours and period-correct interiors can have a major impact on the value of a classic vehicle. While highly modified vehicles may appeal to some buyers, originality and the history it brings with it is usually prized in the classic car market.
Market value vs agreed value
Understanding the difference between market value and agreed value is essential when valuing your classic car for insurance.
Market value
Market value represents what your classic car might reasonably sell for at the time of a claim. This can be difficult to determine accurately for classics, as comparable sales may be limited or inconsistent. Relying solely on market value can sometimes result in disputes if a claim occurs.
Agreed value
Agreed value is a figure agreed in advance between you and your insurer. This amount is based on evidence of the car’s condition and worth and is fixed for the duration of the policy. Many classic car owners prefer agreed value because it provides certainty. If the car is written off, the agreed amount is paid without debate, provided policy terms are met.
At Heritage, we offer free agreed value as part of our classic car insurance policies, helping owners to protect the true worth of their classics.
How to determine your classic car’s value
There are several practical steps you can take to arrive at an idea of your classic vehicle’s value in order to have a benchmark in mind when deciding on classic car cover.
Research recent sales
Looking at recent sales of similar vehicles can provide a useful benchmark. Specialist auction results, classic car dealers and enthusiast publications all offer insight into current market trends. It’s important to compare cars of a relatively similar condition, originality and specification.
Professional valuations
Independent valuations from recognised specialists or clubs can provide authoritative evidence of a vehicle’s worth. These are often particularly useful for rare or high-value classics. Many insurers may request professional valuations for agreed value policies above certain thresholds.
Photographic evidence and documentation
Clear photographs, restoration invoices and service history all help support a valuation. Documentation demonstrates how the car has been maintained and can justify higher values where appropriate. At Heritage, we ask for several photos of your vehicle for any valuation over £30,000
How often should I review my classic car’s value?
Classic car values can change over time due to market trends, restoration work or increased demand. It’s generally advisable to review your valuation:
- At each policy renewal
- After significant restoration or upgrades
- If market values rise or fall noticeably
Failing to update your valuation could leave you underinsured if values increase, and likewise could leave it overinsured if they drop.
Valuing a classic car under restoration
Cars undergoing restoration can be more challenging to value. Their worth may increase as work progresses, but market value may not reflect money already invested. In these cases, insurers may start with a conservative value and adjust it as the restoration reaches key milestones.
Keeping records of parts, labour and progress helps support changes to the insured value over time. Specialist insurers understand restoration projects evolve and can work with owners to reflect this in their cover. During a restoration process, laid up insurance may be most suitable and cost-effective.
How do I value my classic car? FAQs
Classic car insurers consider factors such as condition, rarity, originality, market demand and supporting evidence when valuing classic vehicles.
Agreed value insurance sets a fixed value for your classic car at the start of the policy, providing certainty in the event of a total loss. At Heritage, we offer free agreed value.
Not always, but professional valuations can be helpful for high-value or rare vehicles and may be required for agreed value cover above certain limits.
Yes. Some classics appreciate as demand grows or following high-quality restoration. Equally, they may depreciate if demand drops. Either way, it’s important to insure at the correct valuation to ensure you’re not left short in the event of a claim on a vehicle that’s been undervalued, and that you’re not paying too much in premiums for a vehicle that’s been overvalued.
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