There are numerous factors that affect how much a motor insurer charges its policyholders to insure their vehicles whether it is, for instance, a classic car or a family car. For example, the make and model of car, how many miles you drive each year, where you live, where the car is kept overnight, the age of the drivers and their claims history.

With regard to the later, it is interesting to read that according to data published by the Association of British Insurers (ABI) that has kept records since 2013, the amount paid out by motor insurance companies to meet claims on cars in the first quarter of 2025 amounted to £3.2 billion. This is a record figure since the ABI started to collate such information.

The above figure will have been made up of a number of things with repair costs being the major one with this figure amounting to £2.1 billion. There are a number of reasons why the cost of repairs reached that level such as the increased cost of labour, technicians who are skilled being in short supply and the cost of replacement parts.

The cost of meeting claims for something being stolen from a car or the car being stolen amounted to an average of £11,300 per claim.

Another thing worth bearing in mind is that modern cars are more sophisticated these days with technology advanced components in many cases that can prove to be expensive to replace. Just look at some wing mirrors that nowadays include an indicator light, heating and the mechanism to be closed inwards when the car is locked to reduce the possibility of the wing mirror being hit by a passing vehicle.

Although car insurance premiums have been reducing for quite some time, would they have come down further if motor insurance companies did not have to pay out so much to meet claims? Probably!

So, what can motorists do to reduce the possibility of making a claim on their car insurance policies? Well, try to park your car in a well-lit area at night or in a location that is frequented by a lot of people as this may reduce the possibility of the vehicle being stolen. Avoid leaving items on the seats in the car and instead placing them out of sight in the boot to reduce the possibility of a thief breaking into the car to steal those items. Whilst driving, take extra care keeping within the speed limits to hopefully reduce the possibility of being involved in a road traffic accident.

Whilst writing, if your existing classic car insurance is shortly due to be renewed, why not get in contact with us at your earliest convenience to obtain a competitive quote without any obligation. We look forward to hearing from you.