Insure classic cars at market value: How to protect the true value of your classic car
16/05/2025
10
Minutes
Katrin Straub
Managing Director at nextsure
Your classic car is more than just a vehicle; it is a passion on four wheels. Yet a standard motor policy often covers only a fraction of its true value. Find out how to insure your classic correctly at market value and protect yourself against costly underinsurance.
The topic in brief and concise terms
Always insure your classic car for its replacement value, not just its market value, to avoid underinsurance of up to 25 per cent.
An up-to-date valuation report is the binding basis for compensation and should be renewed every two to three years.
Pay attention to important tariff details such as all-risk cover for business damage and contingency cover of at least 20 per cent for value increases.
Foundation of protection: understanding market value versus replacement value
The biggest mistake in classic car insurance is an incorrect sum insured. Many policies are based on the market value, which represents the average price in a private sale. However, this value takes neither the dealer's margin nor VAT into account. By contrast, the replacement value describes the price you would need to pay to buy an equivalent vehicle from a dealer. The replacement value is therefore usually 15 to 25 per cent above the market value. Insurance based only on the market value almost always leads to underinsurance. Comprehensive tariffs should therefore always use the replacement value as their basis. This ensures that after a total loss, you are financially able to obtain an appropriate replacement.
The Valuation Report: The indispensable foundation for your insurance
To insure your classic car properly, a valuation report is essential. Insurers require different appraisals depending on the vehicle’s value. For vehicles valued below €50,000, a brief valuation is often sufficient, costing from around €150. For more valuable classics worth over €80,000, a detailed valuation report is usually mandatory and can cost up to €500. This document is the appraisal, i.e. the assessed value recognised by the insurer in the event of a claim. Without an up-to-date report, the insurer may significantly reduce the compensation. A valuation should be updated every two to three years to document increases in value. Investing in a professional valuation report for insurance protects you from unpleasant surprises.
Choosing the right policy: pay attention to the details in the contract
Not every classic car policy offers the same cover. Pay attention to crucial clauses. Inflation protection is important, as it takes automatic increases in value into account. Many tariffs offer cover of up to 30 per cent above the value determined in the valuation report. This closes a gap caused by market developments between two valuations. All-risk cover provides maximum protection. It covers not only the usual comprehensive risks, but also operational, breakage and brake damage. All-risk cover is often available for vehicles with a condition rating of two or better and a market value from €25,000. Check too whether vandalism and transit damage are already included in partial comprehensive cover, which is the case with good tariffs. A detailed comparison of classic car insurance policies is therefore essential.
Expert tips for seamless protection and value retention
Beyond the standard clauses, there are other important aspects. Our expert tip: make sure you have a restoration insurance policy. It covers your vehicle and expensive parts even during the often years-long restoration phase. Many people forget that a vehicle not registered for road use must also be insured while in the garage. For this there are special laid-up policies. Another point is cover for accessories and spare parts. Good policies insure these up to a value of 5,000 euros free of charge. Also clarify whether your insurer waives a no-claims discount downgrade in the event of a claim, which is common with specialist insurers. These details determine what a classic car insurance policy costs and what benefits you receive.
Five steps to the ideal classic car insurance
The route to the right cover for your classic can be planned systematically. The following five steps will guide you safely to your goal:
Have a valuation report prepared: Find a recognised expert and have the current replacement value of your vehicle determined.
Define requirements: Set your annual mileage (often a maximum of 9,000 kilometres) and clarify the storage conditions (a garage is usually mandatory).
Choose the type of insurance: At a minimum, opt for comprehensive cover; for high-value vehicles, choose all-risks cover.
Compare tariff details: Check the level of precautionary cover, inclusion of vandalism, and the conditions of laid-up cover.
Take out the policy and keep it up to date: Finalise the contract and remember to renew the valuation report every two to three years in order to adjust the cover.
This structured approach ensures that the emotional value of your classic car is also underpinned by robust financial protection.
Conclusion: Targeted protection is not a luxury, but a necessity
The question is not whether a specialist classic car insurance policy is worthwhile, but how to structure it optimally. Market value insurance, supported by a current valuation report, is the only way to protect the true value of your classic. Look out for high-performance cover concepts such as all-risks cover and sufficient provision for increases in value. Only then will driving your classic car be an untroubled pleasure, free from financial worries. Well-thought-out cover is the best investment in your passion. Request an individual risk analysis now: Have your insurance situation reviewed free of charge and receive specific recommendations for improvement.
More useful links
The Federal Motor Transport Authority (KBA) offers a press release on the topic of classic cars in 2023.
Another press release from the Federal Motor Transport Authority (KBA) provides information on the vehicle stock in 2025.
The website of Classic Analytics offers expertise and valuation information for classic cars.
The German Automobile Trust (DAT) provides comprehensive data on vehicle valuation and market analysis.
The Federal Ministry for Digital and Transport (BMV) provides an overview of vehicle registration plates in Germany.
The German Association of the Automotive Industry (VDA) reports in a press release on slightly rising classic car prices.
FAQ
At what vehicle value is a valuation report required for insurance?
It depends on the insurer. Often, an appraisal is required from a market value of 50,000 euros. For comprehensive cover, the threshold can be as low as 25,000 euros.
What happens if the value of my classic car has increased since the last appraisal?
That’s what the precautionary cover is for. It secures an increase in value of up to 30 per cent above the value stated in the valuation report and thus protects against underinsurance.
Does the classic car insurance also cover damage during rallies?
This varies. Journeys undertaken solely to achieve top speeds are usually excluded. However, regularity and reliability runs can often be included in the insurance cover. Check this in your policy terms.
Can I also get specialist insurance for my classic car without an H registration plate?
Yes, many insurers already offer special policies for youngtimers aged 20 or 25, even if they do not yet have an H registration plate.
Are spare parts and my accessories covered too?
In many policies, spare parts and accessories permanently attached to the vehicle are also covered free of charge under comprehensive insurance up to a certain amount, for example €5,000.
Will my premium increase after a claim?
No, a good classic car insurance policy works without no-claims bonus classes. Your premium will not be increased after a settled claim.
