Classic and unusual vehicles may represent the past, but the underwriting challenges surrounding them are firmly rooted in the present. In a motor market grappling with repair inflation, behavioural risk and rising customer expectations, the specialist segment offers a revealing case study in how risk is really assessed.
Strip away the nostalgia and a clearer truth emerges - these are behaviour-led risks, not just heritage assets. That understanding, Yvonne Gosney, head of classic car trading at Lancaster Insurance, said, begins with deep immersion in the market.
“To offer policies which enthusiasts want and are relevant to them, it’s important to truly be part of the community and keep on top of market and customer developments,” Gosney said.
One of the most persistent misconceptions brokers encountered was assuming classic risk was defined primarily by vehicle age or headline value. In reality, Gosney said, the ecosystem surrounding the vehicle carried equal weight.
She said Lancaster gathered intelligence directly from enthusiasts at car shows and maintained regular dialogue with car club officials and editors in the classic car press. Insurer partners were often part of those conversations.
“This joined up thinking and ways of working helps us to be able to respond to market changes efficiently, ensuring our offering is reflective to what enthusiasts need,” Gosney said.
The temperature of the market can shift quickly. Gosney said customer needs were constantly evolving - from demographic changes to rising interest in particular marques and different expectations around service delivery.
“The growing digital revolution has significantly altered the way customers interact with their financial services providers and we’re seeing this in the classic car space too,” Gosney said. “Customers are wanting a slicker and quicker service with the option to self serve and purchase or renew online.”
That shift extended beyond convenience. Competing solely on premium was no longer sufficient in a segment where engagement and expertise carried weight. Digital capability, Gosney said, had to sit alongside advisory strength, making it vital to offer customers both routes of engagement.
If community defines part of the exposure, valuation defines the financial risk.
Gosney said classic car insurance was widely regarded as “enthusiast insurance”, with agreed value forming a central pillar of the proposition. Lancaster offered both one- and two-year agreed value options, with the shorter-term allowing flexibility in buoyant conditions.
Independent valuation experts assessed rarity, condition and historical significance. But Gosney said the process was not formulaic.
“This human element also allows us to consider repair costs and changes in the values of cars in the classic market as we meet regularly with the valuation team to review the current conditions of the market,” Gosney said.
In recent years, classic car prices have demonstrated how quickly sentiment can inflate, and correct. For brokers, agreed value cannot be treated as a static feature. It requires active review, disciplined underwriting and clear conversations with clients about restoration costs and market shifts.
Ultimately, Gosney said, the vehicle itself was only one component of the overall risk.
“In terms of the policies offered, the customer profile and usage plays a significant role in rating the insurance policy,” Gosney said. “The car itself is obviously still important, but factors such as being a member of a car club, if it’s a second vehicle and if limited mileage has been chosen, for instance, help us to ensure the policy is targeted and fit for purpose.”
Garaging arrangements, maintenance standards, mileage restrictions and event attendance all influenced underwriting outcomes, she said.
“The vehicle is only a part of the overall risk we take into consideration when rating cover,” Gosney said.
Even where requirements were niche, Gosney said specialist insurer panels allowed brokers to accommodate a wide spectrum of exposures, provided there was a detailed fact-find at the outset.
Gosney said agility continues to remain critical as both customer behaviour and market dynamics continued to evolve. “We are used to being flexible and agile to adapt to any changes in the market and I see the industry continuing to do so for years to come,” Gosney said.
In a tightening motor market, the classic segment reveals a wider underwriting truth. Risk is rarely defined by the badge on the bonnet alone. It is shaped by behaviour, engagement and discipline. Those who understand that distinction will not only place specialist business more effectively, they will underwrite more intelligently across the entire motor book.
