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Insurance

The Difference Between Classic Car Insurance and Daily Driver Insurance

Published 31 March 2025 | Last updated 24 November 2025

We’ve put together this useful guide to explain the difference between standard vehicle insurance and classic car insurance, to help you get the right cover for the right price.

Choosing the right car insurance can feel like a bit of a puzzle, especially with so many options to choose from. But whether you’re commuting to work every day or taking your beloved classic out for a sunny Sunday drive, having the right cover is crucial.

Classic Car Insurance vs Daily Driver Insurance

If you’re lucky enough to own a VW Beetle, Karmann Ghia, or any other cherished classic, you might be wondering which type of insurance is best for you. The difference between Classic Car Insurance and Daily Driver Insurance isn’t just the vehicle’s age – it’s also about how you use it. There’s no one-size-fits-all policy, which is why we tailor our coverage to suit your individual needs.

What does Classic Car Insurance cover?

Classic car insurance is a bit different. It’s intended for older vehicles that aren’t used on a daily basis – like a lovingly restored VW T2 or a vintage Beetle that only comes out on those warm summer days. Most classic car policies come with mileage restrictions, so you’ll need to stay within the limits.

What does Typical Car Insurance cover?

Daily Driver Insurance is what most of us have for our everyday cars – the ones we rely on for the school run, commuting, shopping, and everything in between. It provides flexible cover with no mileage restrictions, which is exactly the kind of cover you need if your vehicle is essential for your daily routine.

What Are the Main Differences Between Classic Car Insurance and Daily Driver Insurance?

There are lots of important differences between the two types of insurance, so it’s worth familiarising yourself with them to make sure you’re properly covered. Here are some of the main ones to note:

Usage Restrictions

Classic car insurance usually comes with mileage limits, typically ranging from 3,000 to 5,000 miles per year, as these vehicles are not used for daily commuting. On the other hand, daily driver insurance has no mileage restrictions, making it ideal for vehicles used on everyday journeys.

Eligibility and Age of Vehicle

Classic car insurance is generally available for vehicles aged 15 to 40 years old, though the criteria can vary between insurance providers. Daily driver insurance covers vehicles of any age, including brand-new models.

Policy Premiums

Daily driver insurance is usually more expensive, due to the higher risks associated with regular use, such as wear and tear, and an increased likelihood of accidents. Classic car insurance on the other hand, is generally much cheaper, as insurance providers assume the vehicle is well-maintained and used less frequently, making it lower risk.

Agreed Value vs Market Value

With daily driver insurance, payouts are based on the market value of the vehicle, which factors in depreciation. But with classic car insurance, we offer agreed value cover as an additional benefit. This means we’ll work with you to agree a fair, fixed value upfront that reflects the true value of your vehicle, taking into consideration any modifications and upgrades, giving you maximum protection.

Storage

Classic car insurance often has the requirement that the vehicle is stored securely in a garage or under cover to access lower premiums. Standard car insurance does not have any strict storage requirements.

Multi-Car & Membership Discounts

Many insurers offer discounts for members of classic car clubs, or for those who insure multiple vehicles. For regular car insurance, discounts are usually based on factors such as no-claims bonuses instead.

Classic Car Insurance

Daily Driver Insurance

Can You Switch from Daily Driver to Classic Car Insurance?

So, what do you do if your vehicle becomes a classic? It might be time to change your policy from standard car insurance to classic car insurance. Here’s how:

1. Check If Your Car Qualifies as a Classic

Each insurance provider has different criteria for what defines a classic car, but as a general rule, your vehicle will likely qualify if it meets the following conditions:

It’s between 15 and 40 years old
It’s used for leisure or occasional use, not for daily commuting
It’s well looked after and is securely stored (e.g. in a garage)
In some cases, being a member of a classic car club can help.

2. Compare Classic Car Insurance Policies

Not all insurance providers offer classic car cover, so it’s worth looking around to find a policy that meets your needs. Here at Just Kampers Insurance, we’ve been offering specialist classic car insurance for over 20 years, and our tailored policies come with great benefits. Here are some important things you should look for:

Agreed value cover, ensuring you’re compensated fairly if the car is written off.
Limited mileage discounts, saving you money if you don’t drive it often.
Breakdown cover, so you’re protected wherever you are.
Multi-Car policies if you own more than one vehicle.

3. Contact Your Current Insurer

Get in touch with your current insurance provider and ask if they offer classic car insurance, and whether your current policy can be converted. If they don’t provide classic car insurance, check if there are any cancellation fees before switching to a specialist insurer.

4. Set Up a New Classic Car Insurance Policy

Once you’ve found the right policy for you, make sure it is active before you cancel your existing cover. You may need to provide some documents for your new policy, such as vehicle condition reports or photos, especially if you’re choosing agreed value cover.

5. Cancel Your Old Policy (If Necessary)

Once your new insurance is in place and confirmed, contact your previous insurer to cancel your daily driver policy. If you paid annually, you may be entitled to a refund, so be sure to check this, too.

6. Update Your Documents

If your vehicle is over 40 years old, it may be exempt from MOTs and road tax – but you’ll need to apply for “historic vehicle” status with the DVLA. It’s also a good idea to update your V5C logbook.

In Conclusion

There are some key differences between classic car insurance and daily driver insurance that you should be aware of. Daily driver insurance covers vehicles used for regular or daily travel, with no mileage limits or age restrictions. Classic car insurance is designed for older, well-maintained vehicles that are only driven occasionally.

Here at Just Kampers Insurance, we’ve been helping drivers find the right cover since 1998, so we know exactly how to get you the very best deals on a policy that suits you.

Whether you need insurance for your everyday car, or your cherished classic, we’re here to make sure it’s properly protected. If you’re not sure which policy is right for you, or you’d like to get a quote, simply get in touch with our friendly team – we’re always happy to help.

Plus – if you insure with us, you’ll get an exclusive 10% off parts and accessories from Just Kampers! It’s a win-win.

What Should I Do and Not Do if I Have an Accident? FAQs

Do I need to tell my insurer about an accident if I’m not making a claim?

Yes, you should still notify your insurer about the incident, even if you don’t intend to claim for damage to your own vehicle. Your policy may require you to report incidents which could potentially lead to a claim, particularly if another driver later decides to make a claim against you.
Reporting the accident promptly also ensures your insurer has a record of your version of events.

How quickly should I contact Just Kampers Insurance after an accident?

You should report an accident as soon as reasonably possible. Having your policy number, details of what happened, information about the other people and vehicles involved, photographs and any witness details to hand can help make the process easier. Just Kampers Insurance customers have access to a claims service 24 hours a day, seven days a week.

Will I have to pay my excess if the accident wasn’t my fault?

If you make a claim through your own insurance policy, your policy excess may still be payable initially. Depending on the circumstances of the accident, you may subsequently be able to recover this from the responsible party.

Your claims handler can explain what applies to your particular claim and whether your excess may be recoverable.

Can legal protection help if the accident wasn’t my fault?

Just Kampers Insurance policies include legal protection, which can provide assistance following a non-fault accident, subject to the policy terms, limits and exclusions.

This can include help pursuing eligible uninsured losses, such as an excess you have paid, as well as assistance with certain legal expenses, vehicle hire or claims relating to injuries and other losses.

Will I get a courtesy car while my vehicle is being repaired?

This will depend on your cover and how your claim is handled. If you make a claim under a comprehensive policy and use an approved repairer, a courtesy car may be available for the duration of the repairs, subject to availability.

Different arrangements may apply following a non-fault accident, so speak to your claims handler before arranging alternative transport yourself.

What happens if my campervan or motorhome is written off?

Your insurer will assess the vehicle and the terms of your policy before determining how the claim will be settled.

This is particularly important for classic, converted and specialist vehicles, where modifications and the vehicle’s specification can have a significant impact on its value. If your policy includes Agreed Value cover, check your policy documents to understand how this applies to a total-loss claim.

What if modifications to my campervan are damaged in the accident?

Make sure you tell your claims handler about damage to modifications and converted parts of the vehicle, rather than documenting only the exterior bodywork.

Photograph damaged pop-tops, awnings, furniture, fitted equipment and other converted elements where it is safe to do so. Keeping photographs and documentation relating to modifications before an accident can also help demonstrate your vehicle’s specification and condition.

Should I arrange my own garage to repair the vehicle?

Speak to your insurer or claims handler before authorising significant repairs. The insurer may need to inspect the vehicle, review photographs or agree repair costs before work begins.

This can be especially important with classic vehicles, campervans and motorhomes, where specialist components or conversion work may require particular expertise.

What should I do if the other driver’s insurer contacts me directly?

Don’t ignore correspondence about the accident, but avoid getting drawn into discussions about liability or agreeing a settlement without speaking to your insurer.

Just Kampers Insurance advises customers to forward third-party correspondence unanswered so it can be dealt with appropriately.

What if the other driver doesn’t have insurance or leaves the scene?

Gather as much information as you safely can, including the vehicle registration, make, model and colour, photographs or dashcam footage, and witness details.

Don’t attempt to chase a vehicle that leaves the scene. Report the incident to the police where required and contact your insurer promptly so they can advise you on the next steps.

Can I claim for belongings damaged inside my campervan or motorhome?

Whether damaged belongings are covered will depend on your individual policy and the cover you have selected.

If items inside your vehicle are damaged in an accident, photograph them and keep any evidence of ownership and value, such as receipts. Don’t dispose of damaged items until you have spoken to your claims handler.

What happens to my no-claims bonus after an accident?

The effect on your no-claims bonus will depend on factors including how the claim is recorded and the terms of your policy. Even where you have a protected no-claims bonus, a fault or pending claim may still affect future insurance premiums.

Check your policy documents or speak to the Just Kampers Insurance team if you’re unsure how a particular claim could affect your policy.

What information should I have ready when I report an accident?

It helps to have as much information as possible available, including your policy number, the date and location of the accident, details of the other driver and vehicle, photographs of the scene and damage, witness details, dashcam footage and any police reference number.

Don’t worry if you don’t have everything immediately. Report the incident promptly, and your claims handler can explain what additional information may be needed.

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Written by: Beth Cane

Beth is a Marketing Executive at Just Kampers, with a growing passion for the Volkswagen and motor industry. She loves road trip adventures and attending various motor shows with friends and family in her free time.