For more on this part of the insurance industry:
Specialty vehicles insurance protects people and companies who own and deal with unique, high-value, or modified vehicles that do not fit standard car insurance policies. This includes:
Insurance for these vehicles is essential due to high repair costs and distinct risks. It supports the growing number of UK collectors, businesses, and hobbyists with rare and modified cars.
If a fire destroys a classic car storage facility, uninsured owners could lose millions. Specialty vehicle insurance allows stakeholders to recover from such losses without much financial hardship.
Insurers are offering lower premiums for special vehicles with safety features like automatic braking and lane-keeping assistance. Telematics makes costs more accurate as it allows insurers to price policies based on actual vehicle usage.
Also, more providers now promote eco-friendly practices by giving discounts for electric and hybrid specialty vehicles. But brokers should also focus on major issues like:
Vehicles with non-standard modifications, like the Tesla Cybertruck, are also struggling to meet UK insurance and safety rules.
Brokers should bookmark this page for reference and work closely with insurers to find tailored policies that cover these unique hazards.
People and businesses that own or use specialty vehicles need this insurance. These include:
A specialty vehicle is one that falls outside standard insurance categories due to its custom modifications, high worth, rare parts, or unique purpose.
In the UK, car insurance falls into three main types. The table below outlines their differences:
|
Type of insurance |
Coverage details |
Who needs it? |
|---|---|---|
|
third-party only (TPO) |
covers damage to others’ vehicles, property, and injuries but not the policyholder’s car |
required by law for all drivers |
|
third-party, fire & theft (TPFT) |
includes third-party cover plus security against theft and fire damage |
suitable for older or lower-value cars |
|
fully comprehensive |
covers third-party damage, theft, fire, and repairs to the policyholder’s vehicle |
best for high-value or new vehicles |
Each specialty vehicles insurance coverage option offers different levels of protection, depending on the owner’s needs and the vehicle’s use.
If another driver is at fault, their TPO insurance should cover the repair costs. The policyholder must collect the driver's details and report the accident to their insurer.
If the driver is uninsured or cannot be identified, a claim may need to be filed through the Motor Insurers’ Bureau (MIB). Specialty vehicles insurance may offer additional protection, but it relies on the policy.
How to get cheaper specialty car insurance
There are ways to lower premiums without losing coverage. Below are five ways to reduce specialty car insurance costs:
Speaking with a specialty vehicles insurance broker can help find the best deals and personalised coverage to lower costs even further.
Yes, better security lowers insurance costs by reducing the threat of theft or damage. Common security features that lower premiums:
Car owners who use these strategies also help reduce car theft rates:
Yes, many insurers offer discounts for vehicles driven occasionally. Policyholders can save by agreeing to a lower annual mileage limit. Mileage discounts may apply if the vehicle is:
Selecting coverage based on usage and security helps lower specialty vehicles insurance costs.
