Remember to:

• Get comprehensive cover
• Don’t over-estimate the mileage if you’re only using the car for club meets or weekend driving
• Make sure you’ve an agreed value for the car
• Get breakdown cover if you haven’t already got it
• Check the policy document to see whether you are covered to drive other vehicles, should this be something you do regularly
• Don’t lie about where the car is stored overnight: this could invalidate any claims you may need to make should the car be damaged whilst parked up.

Happy driving!

Get a quote now from Quotezone, our insurance partner: they understand the need for the right policy, and will search a number of providers to help you get the best deal.

From January 2007, the process of expanding the range of insurance groups from the existing to 1-20 to a system using groups from 1-50 has begun.

Over the next 18 months as insurers migrate to the new 1-50 system our website will reflect a vehicle’s group rating under both the old and new system.

The move to 50 groups means that each model of car can be more accuarately banded with cars of similar characteristics.

There can be a significant spread of groups within a particular model range.

How the System Works

Over half of all money paid out in motor insurance claims goes on repairing cars. The cost of spare parts and the times taken by repairers are therefore major factors in pricing motor insurance.

The factors used to calculate group ratings are:

• Damage and Parts Costs – The likely extent of damage to each car model and the cost of the parts involved in its repair. The lower these costs, the more likelihood there is of a lower group rating.
• Repair Times – Longer repair times mean higher costs and the greater likelihood of a higher group rating.
• Different paint finishes on modern cars are an important factor, so these too are taken into account.
• New Car Values – The prices of new cars are taken into account as they are often a good guide to the cost of replacement and repair.
• Parts Prices – A standard list of 23 common parts is used to compare one manufacturers parts costs to another. The lower these costs, the more likelihood there is of a lower group rating.
• Performance – Acceleration and top speed are important factors. Insurers know very well, from their claims statistics, that high performance cars often result in more frequent insurance claims.
• Car Security – Security features fitted as standard equipment by motor manufacturers can help to reduce insurance claims costs. Such features include high security door locks, alarm/immobilisation systems, glass etching, coded audio equipment, locking devices for alloy wheels and visible VIN numbers.

Recommended Group Ratings

The group ratings are recommendations only. Individual insurers will generally use these ratings as a key input to their underwriting process but will also take account of their own claims experience to guide their pricing decisions.

Suffix (A, D, E, U, P, G)

Attached to most of the advisory group ratings is a suffix, which illustrates the level of security fitted as standard to that vehicle. The level is group dependent and the requirements increase along with the group. (The higher the group, the higher the level of security required.) A further explanation of the suffix follows: -

A = Meets security requirement for this group.

D = Does not meet the security requirement for a car of this type and the group rating has therefore been increased. (e.g. A group 9 car where the security requirement is not up to Thatcham’s minimum standard for that group will be listed as a 10D.)

E = Exceeds security requirement for a car of this type and the group rating has therefore been reduced. (e.g. A group 9 car where the security requirement exceeds Thatcham’s minimum standard for that group will be listed as an 8E.)

(It will be seen from the above that the level of security on a vehicle could result in a two group differential between otherwise identical models.)

P = Provisional – This is used in cases where the data for group rating was incomplete at time of launch.

U = Cases where the level of security for the model concerned is regarded as Unacceptable. This does not mean that the car will be uninsurable but consumers should be aware that individual insurers may insist on the security being upgraded before providing cover.

G = Import – Insurance Group Ratings are currently only allocated to vehicles built for the UK market, although our data will list vehicles that are classed as imports. These fall into two categories: -

Parallel Imports – these are vehicles that are built for and sold in Europe and will conform to European Whole Vehicle Type Approval requirements.

Grey Imports – these are mainly vehicles that are built specifically for other, non-EU, markets and are unlikely to conform to European Whole Vehicle Type Approval.

Buying a Car

Motorists planning to buy a new car should check, in motoring magazines or through the ‘My Vehicle’ section of our website, the insurance group rating of the exact model they have in mind. The higher the group number the higher the premium is likely to be. Insurers are not required to follow the advisory group ratings and it is therefore advisable to compare premiums before making any purchasing decision based on the insurance group.

Content provided by Thatcham (http://www.thatcham.org)

Accident insurance
An additional insurance premium that will cover you, in the event of accident, and you suffer certain injuries, including loss of a limb or vision.

Act of God
This refers to an unexpected event that leads to damage or accident, which could not have been foreseen, i.e. an event that falls outside known and preventable risks, and eventualities that are beyond our control.  Severe weather is the most common example: if a tree on your property was struck by lightning and fell onto your car, causing damage this would come under the ‘Act of God’ clause.   The ‘Act of God’ claim can be proposed as a defence in the English law courts against a claim for liability if the event could not have been foreseen or prevented by human intervention.

Approved repairer/garage
A repairer, garage or local mechanic that the insurer has approved and authorised to repair your insured vehicle following a claim by you.

Approved windscreen supplier
A repairer the insurer has approved and authorised to repair or replace the windscreen of your insured vehicle as listed in your policy document.

B
Breakdown
A mechanical or electrical failure, puncture (providing a spare wheel is available), loss of keys, running out of fuel.

C
Cancellation Clause
This is a condition of the contract whereby the insurer or you, the policyholder, can cancel a policy before the expiration date.

Certificate of Motor Insurance
The certificate of insurance shows who can drive the car, what you can use it for and the car that is insured. It covers:
a) The car with the registration number shown on the certificate of insurance
b) A car your motor trader gives you, up to 1700cc, while your insured car is in a garage for service or repair;
c) A car the insurer gives you temporarily after an accident.

Collision damage waiver
An optional insurance premium that you may be able to take out which removes your liability to pay an insurance excess, should your vehicle be involved in an accident with another vehicle such as a hire car.

Cooling Off Period
The time period in which you, the customer may cancel the insurance policy agreement without incurring any penalties. Motor insurance usually policies carry a certain number of days cool off period. You may cancel your policy during this period and will only be charged for the time you were under cover.

Cover
This refers to the risks and eventualities that your insurance policy protects you against.

Claim
This is the request that you can make to us for payment in accordance with the terms of your policy agreement.

Contractual liability
Once you have signed your declaration and bought a policy from us you are legally obliged to adhere to the specific terms and conditions of your contract with us. Failure to meet these responsibilities can put you at risk of financial penalties. In the event that the information supplied to us regarding a claim is untruthful, you may also incur criminal charges.

D
Disclosure
When you make an application for a motoring insurance policy with us, it is your duty to disclose all relevant information that may affect our calculation of your risk and related premiums.

Driver, drivers
Any person shown in the Statement of Facts permitted to drive the insured car.

Driving abroad extension
Your UK motoring insurance policy provides you with cover for driving within England, Wales, Scotland, Northern Ireland, the Isle of Mann and the Channel Islands. In order to extend your cover for driving on the Continent or in non-EU countries, you must contact your insurance provider.

E
Emergency treatment fees
Following accident and injury, the insurer will pay emergency treatment costs as necessary under the Road Traffic Acts.

Endorsement
An endorsement is a written document attached to your insurance policy that modifies the original policy conditions and premiums to incorporate additional needs requested by you. The endorsement details changes to the coverage afforded under the original policy i.e. it allows you to add new items and eventualities at a later date during the term of the policy, such as allowing a new driver not originally named in your policy to drive the insured car.

Excess
This is the contributory amount of money that you are responsible for and have agreed to pay/your contribution to the cost of any required repairs, when you make a claim. This first payment will be specified in the Statement of Facts. It is usually a fraction of the total bill. For example, your excess could be to pay the first £100 of any claim.

Exclusions
These are the clearly stipulated events and situations for which your motoring insurance policy DOES NOT provide you with cover. Exclusions to your policy will be specified in the Statement of Facts. Examples of exclusions include damage to the insured car due to overloading by you and allowing drivers not named as approved and insured drivers in your policy to drive the insured vehicle.

F
Fault claim
A fault claim is a circumstance in which the insurer will be unable to recover all of the costs from a claim you make. For example, if your vehicle is broken into and items not covered by your policy are stolen.

Fully comprehensive
A motoring insurance policy that covers you for damage to your vehicle and damage you cause to vehicles owned by Third Parties.

G
Green card
A document that proves that you have the legal minimum insurance cover required (Third Party insurance) for driving abroad. This document is recognised by all EU countries, and is a legal requirement when driving in many EU countries.

I
Insurance broker
The broker is the intermediary between you, the customer, and insurance companies. Brokers are typically experts in their given field of insurance who research the insurance market to find the best cover for their clients. In the UK, brokers must be approved by the Financial Services Authority (FSA) to operate legally.

Insured car
The vehicle named in the Statement of Facts.

Insured Value
This is the amount of money that you have insured your vehicle for.

K
Knock for knock
In the event of a collision between two insured vehicles, ‘knock for knock’ describes the arrangement whereby the insurers of each vehicle agree to paying the cost of repairing their own client’s insured vehicle rather than each making a claim against the other and paying the costs of the other. This can dramatically cut the costs of administration fees and does not negatively affect you, the customer, in any way.

L
Liability insurance
Insurance designed specifically to cover a claim or payment due as a result of personal injury or property damage caused to another person by you / other named drivers of the insured vehicle. Liability insurance is included in our Third Party liability cover.

Limits
This is the maximum amount of insurance cover that can be paid for a total loss.

M
Main driver
The principle driver, i.e. the person who drives the insured vehicle the most whether they are the owner or not.

Market value
This means the amount of money your model of car would cost should you need to replace in today’s market.  In the event of write off, the cost of replacing your insured car will be based on the market price at the time of the loss.

Material fact
A material fact refers to all the key personal information and statements the insurer asks you to disclose when applying for insurance policy cover. It is information, such as your age, gender, health and driving history that determines our decision regarding your level of risk and the premium the insurer will charge you accordingly.  Failure on your part to disclose a material fact could invalidate your policy and incur penalties.

N
Named driver
A named driver or drivers are individuals that you have named on your insurance policy and permit to drive a vehicle that you own. Your named drivers could be your partner/spouse, or other family members and friends who are qualified drivers.

New for old (motor)
Rather than pay the market value of a new car involved in a total loss, some insurers will replace it with an identical new car. If it is a brand new vehicle the market value of this vehicle will have depreciated so much in the first year, that it would leave the policy holder unable to replace the car.

No Claims Discount / No claims bonus
For each claim free year insurers will give you a discount until you reach their maximum level.

Non-fault claim
This is a claim whereby the insurer is able to recover all the costs of damage to your insured car from another party i.e. the insurance company of the motorist who caused damage to your vehicle.

P
Personal possessions cover
This is an optional, additional insurance premium to cover you for the damage or theft of personal items such as money, jewellery and luggage in your insured vehicle.

Policy
This is the detail of the motor insurance cover that you have bought from your insurer.

Policy document
This leaflet provides a summary of the significant features, benefits and limitations of the cover provided by your insurer.

Policy schedule
A document provided by your insurer that details the sum insured, any discounts you may qualify for and the actual premiums you have to pay according to the terms of your policy.

Policy term
This is the time period, for example, one year, for which you are covered by your motor insurance policy, as decided by you.

Policyholder
This is the person to whom your insurer issues a policy.

Premium
This is the amount of money you will be charged by your insurer for your chosen motoring insurance policy i.e. the amount you will pay either annually or monthly for the policy cover.

Protected No Claims Discount / Bonus
This is an additional premium that you may wish to pay as part of your policy to ensure that your No Claims Bonus is kept intact in the event of a “fault” claim.

Public liability policy
This covers your legal liability for injury or damage caused to others in the event of an accident for which you are responsible.

Q
Quote
Having taken into account all the information provided by you, the quote is the amount of money an insurer calculates will be the cost of providing insurance cover and related services based on your requirements and level of risk.

R
Registered keeper
This is the person whom you have permitted to drive and look after the insured vehicle that you own on a daily or regular basis.  For example, if you have loaned your car to a family member or friend and it is parked or garaged at their home/by them, you must name this individual as the registered keeper.

Renewal
This is a contractual agreement to extend or continue your insurance policy beyond the original agreed term. For example, our motoring insurance policies are set up for 12 months’ coverage and, therefore, come up for renewal on an annual basis. Our renewals process is fast and efficient allowing you to continue with the original policy terms or add any additional coverage as required.

Rider policy
Some policies offer the facility to ride any bike up to a certain CC/engine size. This is known as a rider policy.

Risk
This refers to all the circumstances and eventualities that your chosen motoring insurance policy insures you against. These include accident, fire, theft, attempted theft and accidental damage.

Risk address
The address that you have registered as the place that the insured vehicle is kept (parked or garaged).

Roadside Recovery
A motor insurance policy option and additional premium that provides recovery and repair services for vehicles/motorists when they break down on the road. Your insurer may offer a range of breakdown service options, including Breakdown Assistance and Recovery; Home-Call Breakdown Service; Nationwide Breakdown Recovery Service, and European Breakdown and Accident Assistance.

Road Traffic Act
The Road Traffic Act comprises a set of laws and all subsequent legislation concerning a driver’s responsibilities and liabilities on UK roads. This includes the law that all vehicles driven on UK roads must be insured.

S
Security devices
Certain models of cars have been identified by us as being most at risk of being stolen / subject to break in.

Settlement
This is when your insurer has agreed the terms of and paid your claim.

Standard Cover
Our standard cover Motor policy option covers: damage to your vehicle (sustained in an accident, by malicious damage, fire, theft or attempted theft), damage you cause to other people’s vehicles or property or for injuries they sustain, Uninsured Loss Recovery and Legal Expenses.

Statement of Facts
The document in which the information you provide and the cover you have bought is printed.

Suspension of motor insurance
A temporary ‘freeze’ on insurance cover while, say, a client is abroad and the car is kept in a garage.

T
Term
This is the period of time for which your policy is issued to cover. Insurance policies are typically set up for 12 months.

Third party
If you crash your car into another vehicle you are the first party, your insurer the second party, and the motorist that you collide with is the third party.

Third-party liability
This refers to your legal obligations to the third party, i.e. the motorist to whom you have caused personal injury and or damage to their vehicle, in the event of accident.

Third party, fire and theft
This is a motoring insurance policy option that provides third party coverage, plus additional cover against fire or theft.

U
Under-insurance/ under-insured
This is the situation whereby a customer does not take out enough insurance to cover their requirements, and pays smaller premiums than they should in relation to their risks. Your insurer is, as is the case for all insurance companies, only legally obliged to pay out monies to meet the exact level of cover agreed under your policy. For example if you do not insure your vehicle for a realistic insurance value you might not be able to buy a replacement car of the same value.

Underwriter
This is the title given to an insurance expert or company who assesses an insurance risk and calculates the premium that you will be charged for insuring that risk.

Underwriting
The process in which an insurance company assesses your risk based on personal information supplied by you. Your age, gender, level of health, and motoring history are all taken into account in order to assess the likelihood of you making a claim on the policy. Your insurance premiums are calculated on these factors.

Uninsured loss
This refers to anything which arises from an accident, fire or theft that your insurance policy does not cover you for.

English law will apply to uninsured loss recovery and breakdown cover. The rest of your policy with your insurer is governed by the law that applies to where you reside within the United Kingdom, Channel Islands or Isle of Man.

V
Voluntary excess
This is the amount of money that you have agreed to pay in the event you need to make a claim. It is your agreed % contribution to the cost of any required repairs, when you make a claim. This first payment will be specified in the Statement of Facts.

Valuables
Valuables include jewellery, photographic equipment, musical instruments and stamp and coin collections.

Voluntary Driving Restriction
In return for restricting the driving of the car to certain people, insurers will reduce the premium charged.

W
Waiver of premium
This is an optional additional insurance provision that sets certain conditions under which your insurance policy will be kept in full force by us without the payment of premiums. For example, it guarantees that your contributions will continue to be paid in full in the event that you fell ill or lost your job.

Written off/ a write-off
The term used to describe a vehicle which is a total loss i.e. a vehicle that is beyond repair or too badly damaged to make repairs economically viable.

We, us, our, the company
Usually refers to your insurer.

You, your
The person named as the policyholder in the Statement of Facts.

His forecast included higher fuel duty and petrol costs, an increase in new car prices and a significant boost in demand and value of classic and used cars. The prognosis? Choose wisely, and you could be in for a significant return on your classic car if you choose to sell in 2010.

Last November, Bonhams, the auction house in Harrogate, reported a 92% record in car auctions that have reached or exceeded their reserve price. Rather than investing in dispirited banks, people are choosing to finance something they find joy in. As well as classic cars, sales in antique guns and clocks have also been busy. Aside from the pleasure of putting your assets into classic items, there is a little-known tax benefit on items considered to have less than 50 years life left – they are completely free from capital gains tax when resold or inherited.

So what should you look for in an investment car? Here’s a few of our suggestions.

• Cars that hold their value, such as Fords, Lotus’, and Ferraris, are always a wise choice.
• Your car doesn’t have to be the most reliable vehicle in the world, but it does help.
• Failing reliability, be sure to find a good parts dealer before you buy.

If you’re going to invest in a classic, you should also make sure you insure it with someone who knows the true value of the vehicle. With Quotezone, you only have to fill in our online forms once and they hook into the quote systems of a number of leading uk insurers for you. Quotezone then returns their prices to you – in real time, on your screen. So, about two minutes after filling in the forms, you will have around 15 prices on your screen – ranked in price order.

On the Quotezone panel are Adrian Flux, Lancaster Insurance, and other classic car specialists.

When you find the price and product you like, you just click the “details” link beside the quote to apply online or to contact the insurer for more information.

Get a quote for your classic car insurance today, and see how much you could save.

The scheme was only meant to run until February – or until the budgetof £300m had been spent – but the popularity of the initiative has lead to it being extended. You can read more on the UK Government website here.

A bold move indeed, and one that seems to be working. How would this affect future classics? We recently reported on how this scheme could mean that future classics are traded in and scrapped.

For a large number of car-owners seeking a new set of wheels, Alistair Darling’s Scrappage Incentive Scheme will seem like a gift from the used-car Gods. Since mid-May this year, drivers who opt to scrap their cars over 10 years old, are offered £2,000 towards a new one. A smart plan that follows a similar successful scheme in Germany, to get less efficient cars off the road, and boost the deteriorating car industry at the same time.

The Federation of British Historic Vehicle Clubs remitted a request to keep cars over 25 years safe, stating that they had “a wealth of statistics that prove classics do not contribute significantly in any way to pollution and greenhouse gases.” (PDF of FBHVC Newsletter, no.3, 2009). The only problem is, there’s no part of the legislation that protects future classic cars from the crusher. Eighties motoring icons, such as the VW Golf Mk1, the Toyota MR2 Mk1 and the Audi Quattro could become future classics. It’s likely that many car-owners will find the programme a sound way to avoid expensive repair bills, and a possibility that a number of highly restorable, and iconic cars will be scrapped.

The scheme runs until March 2010, so until then, motorists will have to hope that the presence of the next generation of classics is not diminished.

The Certificate of Insurance – this is evidence of insurance as required by the Road Traffic Act.

The Policy Document – sets out in full the terms and conditions of your policy.

You may also receive a Cover Note. This acts as a temporary policy and also as a temporary certificate of insurance for the purposes of the Road Traffic Act.

You should read your policy carefully to ensure it gives you the level of cover you are seeking. There should be no small print or difficult language in modern insurance policy documents. If you are unsure about what the policy does or does not cover then just ask your insurer/insurance adviser to explain.

Comprehensive Motor Insurance Policies usually cover:

• Liability for injuries to other people, including passengers
• Liability for damage to other people΄s property
• Liability of passengers for accidents caused by them
• Liability arising from the use of a caravan or trailer, while attached to the car
• Fire damage and/or theft
• Accidental damage to your own car
• A personal accident benefit – certain amounts are paid in the event of the death or specific permanent disablement of the policyholder (and sometimes his or her spouse or family member)
• Medical expenses necessarily incurred, up to a stated limit
• Loss of or damage to personal effects in the car, up to a stated limit.

Third Party Insurance Policies usually cover:

• Liability for injuries to other people, including passengers
• Liability for damage to other people΄s property
• Liability of passengers for accidents caused by them
• Liability arising from the use of a caravan or trailer, while attached to the car

And Third Party Fire and Theft Policies are generally the same as Third Party policies, but with protection added to cover losses in the event of fire or theft of your vehicle.

Is there anything I should ask or think about when buying motor insurance?

Policy Limits and/or Excesses – Make sure you are aware of any applicable excess and/or cover limits your policy may include. An excess is the first portion of a claim you will be responsible for paying and the insurer will only pay out on the amount above the excess. There may be a number of different excesses in one policy. For example, different excesses might apply depending on whether a claim is for accidental damage or theft. There is usually a separate excess for windscreen replacement claims. Most insurance policies also have maximum limits the insurer will pay out in a claim. You need to check you would be able to afford the excess in the event of a claim, and that the maximum insured would be sufficient to cover your loss.

Insured Drivers – The policy might only cover driving by yourself or specified people, or it might allow driving by any qualified person with your permission, possibly over a certain age limit. Your insurers will want to know about anyone who is likely to drive – particularly their age, experience, claims and driving record and occupation.

Vehicle use – Your policy and certificate set out the uses for which your car is insured. For example, if you or any authorised driver want to use your car in connection with work, make sure that your policy covers this.

No Claims Discount – Policyholders with a claim free (not blame free) record normally qualify for a premium discount. Scales vary from one motor insurer to another but can range from 30% for one claim free year up to 60% or more after four or five years.

Protected Discount policies – are often available, for example, to policyholders who have a good claims record. For an extra premium, a number of claims are allowed without affecting the discount. Typically two claims are allowed in a three to five year period. Your insurance premium or your excess may be affected, however, even though your discount is protected, if you build up a poor claims record or receive driving convictions.

Guaranteed Asset Protection (GAP) insurance – gives you added protection if your car is written off. If you have used a finance agreement to buy your car, GAP insurance pays out the difference between the car’s pre-accident value and your outstanding loan. Some products may also pay for the cost of replacing your car with the current equivalent or provide a deposit to help you buy a new one. And, even if you haven’t taken out a loan, other types of GAP insurance pay out the difference between original purchase price and the car’s pre-accident value.

Motoring Abroad
If you are taking your car abroad you should talk to your insurers about extending your cover if you want more than the minimum legal requirement in each country. You should also investigate getting the internationally recognised proof that you are insured. This is called a a Green Card. There is also a European Accident Statement which could help if you have an accident and have difficulties with the local language. For more information see the document on the right hand side of this page.

Content provided by the ABI (http://www.abi.org.uk)

Insurance allows people to protect themselves against risks like theft, accidents or illness – or to provide for their families in the case of their early death.

Although individual insurance policies can seem complicated, the principle is straightforward. You pay to insure against something happening to yourself or your property. If the worst happens, the insurance company pays out either the full cost of repairing or replacing the damaged goods or an agreed sum.

From their experience, insurance companies can calculate the likelihood of a theft or accident happening – and the cost to them of covering any loss or injury. The higher the risk and financial cost of the loss, the higher the premium you will be asked to pay. But insurance companies can keep costs down by insuring many people against the same risk.

What should I think about when I buy insurance?

What do you need? Some kinds of insurance are compulsory. You have to have motor insurance to drive in case you are in an accident. Your mortgage provider will insist you take out buildings insurance when you buy your home. In other cases, the choice is up to you. You have to decide, for example, how you would afford to pay for medical treatment abroad if you fell ill on holiday or replace your TV or valuables if you were burgled. If you have travel or contents insurance, your insurer would pick up the bill.   You can also insure, for instance, against the cost of repairing or replacing your television or other household appliances if they break down by extending their warranty. You can take out protection to provide income if you lose your job because of your redundancy or ill-health. There are a variety of different insurance policies available.

Content provided by the ABI (http://www.abi.org.uk)