Classic car insurance prices could come under pressure again in 2026 as motor claims inflation is expected to reaccelerate. That matters to owners because when claim costs rise, insurers often need to review premiums. For anyone protecting a cherished classic, understanding the reasons now can help you plan ahead.
ERS expects claims inflation to reach between 8% and 10% in 2026, driven by supply chain disruption, rising energy costs and repair pressures.
While classic car insurance works differently to standard car insurance, wider market costs can still affect valuations, repairs, parts supply and total loss settlements.
TL;DR
- Claims inflation could rise to 8% to 10% in 2026
- Repair bills may increase due to wages, energy and parts costs
- Delays sourcing classic parts could push up claim costs
- Used vehicle values may remain firm if supply tightens
- Agreed value cover may become more important than ever
What is claims inflation?
Claims inflation is the rising cost of settling insurance claims. That includes repairs, replacement parts, hire vehicles, labour, transport and vehicle values. When these costs go up across the market, insurers face larger payouts.
For classic car owners, claims inflation can be especially relevant because older vehicles often need specialist parts, expert repairers and more time to restore properly.
Why are motor claim costs rising again?
Motor claim costs are rising because the wider automotive supply chain remains fragile. ERS highlights fresh pressure from higher oil, gas and shipping costs, along with raw material disruption.
This can feed into:
- Manufacturing costs
- Parts prices
- Repair centre overheads
- Delivery charges
- Courtesy and hire vehicle costs
Even if your classic is only driven occasionally, insurers still face these market-wide costs when claims happen.
How could rising parts costs affect classic cars?
Parts costs could become one of the biggest issues for classic owners. Many classics already rely on specialist suppliers, reproduction parts or refurbished components. If raw material prices rise, replacement parts can become harder to source and more expensive.
ERS notes aluminium prices were around 30% above pre-conflict levels, while polypropylene used in trims and bumpers was also affected.
For classic owners, that could mean:
- Longer waits for body panels or trim
- Higher restoration invoices
- More expensive accident repairs
- Greater chance of write-off decisions on marginal claims