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Mid-market insurance
Classic car specialist insurance is motor trade cover built for restorers, specialist dealers and storage businesses that hold valuable older vehicles for long periods. It matters because one fire or theft can destroy cars that are expensive or impossible to replace.
Part of: Motor trade insurance
In short
Restorers and classic specialists hold customer cars for months, sometimes years, often in a dismantled state. Cover usually needs to reflect agreed or specialist valuations rather than book values, long term custody, the fire risk of paint and body work, road testing, attendance at shows and auctions, and transit by trailer or transporter. The questions that decide claims are how each car is valued, whether partly restored vehicles and loose parts are covered, what the policy says about paint and hot work, and who insures a car during a road test or on the way to an event.
In short: the value of other people's cars while you hold them, your own stock, the workshop and storage buildings, road and transit movements, and your liability to customers, staff and visitors. A generic motor trade insurance policy tends to be written for vehicles that stay a few days and are worth what a trade guide says. Classic and specialist work does not fit that pattern.
The owner's own policy, explained in classic and high value car insurance, may or may not respond while the car is with you. Many owners assume it does; many restorers assume the owner's policy is primary. Agree in your terms who insures what before work begins.
| Issue | Why it matters | What to check |
|---|---|---|
| Agreed value | Market value claims on rare cars are often disputed | Whether your policy pays on an agreed value basis, a declared value schedule or market value |
| Value during restoration | A car stripped to a shell is worth less than when finished, and more than scrap | How partly restored cars, loose parts and owner supplied parts are valued |
| Long term storage | Custody can run for years and stored cars accumulate on site | Per vehicle, per building and per site limits; see customers' goods in storage |
| Customer vehicles | Cover may depend on your negligence or be all risks | Basis of cover for customer vehicles in your care |
Keep a current schedule of every vehicle on site with photographs and a valuation basis agreed with the owner. It helps at renewal and at claim time.
Restoration combines welding, grinding, solvents and paint spraying, often in older buildings with dense storage. Insurers usually ask about spray booths, hot work permits, storage of flammable materials, fire separation between the workshop and storage, and alarms. HSE's guidance on 2-pack isocyanate paints says all spraying should be done in a suitable local exhaust ventilation system with the booth at slight negative pressure, that sprayers should wear air fed breathing apparatus, and that regular health surveillance is needed for people potentially exposed. That guidance is about health, but the same controls are what property underwriters look for.
A workshop fire is the scenario that tests the whole programme: buildings, customer cars, your own stock and loss of income. The worked motor trade premises fire scenario shows how sections interact, and business interruption insurance explains the income side.
Road testing. Road risks need to cover the drivers who test customer cars and the value of those cars on the road. Some policies cap the value of any single vehicle driven. If you use trade plates, GOV.UK says they may only be used on insured vehicles for the stated purpose.
MOT and tax. GOV.UK's historic vehicles guidance says a vehicle built or first registered more than 40 years ago does not need an MOT provided no substantial changes have been made, but it must still be roadworthy. It also says vehicles built before 1 January 1986 can stop paying vehicle tax from 1 April 2026 once the historic tax class is applied for. For a restorer, the point is that a car may be legally on the road without an MOT, so your own inspection before a road test carries more weight.
Events and auctions. Cars on display at shows or held at auction sites are away from your premises. Check whether your policy covers vehicles at named events, while on display and while unattended.
Transit. Trailer and transporter movements usually need goods in transit or a transit extension, including loading and unloading. Cars shipped abroad raise separate issues covered in vehicle import and export trader insurance.
Underwriters assessing a restoration or classic specialist business usually focus on concentration and control. Expect questions on:
Where values are high, insurers may set a limit per building and ask how cars are spread across the site. Good records and a realistic peak value usually lead to clearer terms; combined motor trade insurance explained sets out how the sections fit together.
These examples are illustrative only and do not describe any real business or claim.
Ask your broker to confirm the valuation basis, per vehicle and per site limits, road test and transit cover, and event cover. Performance and race work overlaps with high performance motor trade insurance and motorsport race preparation insurance.
Apex arranges insurance for classic car specialists and restorers; a broker reads every enquiry.
Sometimes, but it should not be assumed. Some owner policies continue while the car is with a repairer, others restrict cover when it is laid up or dismantled, and the owner's insurer may seek to recover from you if you were negligent. Restorers usually need their own customer vehicle cover and clear terms of business.
Agreed value means the insurer accepts a stated value for each vehicle in advance, so a total loss is paid at that figure rather than argued over afterwards. For restorers it usually relies on a schedule of vehicles with valuations, photographs and regular updates. Availability and conditions vary between policies.
Yes. A vehicle exempt from MOT under the historic vehicle rules must still be roadworthy, and compulsory motor insurance still applies on roads and public places. Your road risks cover must include the drivers and the value of the car being tested.
Only if your policy extends to vehicles at those locations and in transit to them. Many motor trade policies limit cover away from the premises or require a vehicle to be attended. Tell your broker which events you attend and how cars are transported and secured.
A negligence basis only pays if you are legally liable for the damage, while an all risks basis pays for insured damage whether or not you were at fault. All risks cover can reduce disputes with customers and their insurers, but terms and availability vary. Your terms of business should match whichever basis your policy uses.
Send us your current schedules or renewal pack and we will review the whole programme and tell you plainly what to keep and what to change. No fee and no obligation. Or call 0117 325 0027.
Book a programme review Get a quoteApex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances, and it does not guarantee that cover will be available or on what terms.
