As if motorists haven’t suffered enough with the increase in fuel costs and rise in the amount that they pay to insure their vehicles, classic car owners may be interested to note that they may have to pay even more for their classic motor insurance due to a change in what is called the Ogden Discount Rate.
Apparently, when someone is badly injured in a car crash such as being permanently disabled and perhaps never able to work again, the insurer may end up having to pay out a significant sum of money with the capital being used to generate an income for the claimant. Until the 19th March 2017, the amount car insurance companies had to pay out was based on an Ogden Discount Rate of 2.5%. However, following a legal ruling, this rate was changed on the 20th March 2017 to -0.75%. As a result, insurance companies have to set more capital aside to generate the level of income the claimant is awarded.
Unfortunately for the policyholder, it is possible that insurers will increase the premium that they charge motorists. So, if you are the owner of a classic car and have classic car insurance then you may see your premium increase in the not too distant future.
Because of the above, it may encourage more people to shop around for their classic car insurance and obtain a number of quotations from a variety of providers. There are a lot of companies that provide such specialist cover meaning that it is a competitive marketplace that is good from the consumer’s point of view.
So, if you are in the process of buying your first classic car or you already own one and your classic car insurance is shortly coming up for renewal why not spend a short period of time in obtaining some quotes from a number of insurers.