EU Increases Classic Car Insurance Premiums

• Department for Transport (DfT) still hasn’t decided how to apply the Vnuk judgment.
• Federation of British Historic Vehicle Clubs (FBHVC) completed a consultation.
• ‘Triple whammy’ of greater compensation payouts, raised IPT and Vnuk will increase premiums.
• European Commission still urging EU to apply Vnuk judgement selectively.
• Despite closed roads victory, historic motorsport still under threat from Vnuk.
• Lay-up cover may still get more expensive if Vnuk judgement says off road projects need insurance.

For the time being, the historic vehicle movement will have to pay more for insurance according to experts.

The landmark interpretation of the European Motor Insurance Directive (MID) contained in the Vnuk judgement (a ruling that followed the injury of a farm worker Damijan Vnukby by a tractor on private land in 2007 – with insurance compensation denied until the European Court of Justice stepped in) means that insurance could still be needed wherever and whenever you use our classic regardless of its roadworthiness.

The FBHVC have sent a response to the DfT outlining the potential damage to the Classic Car industry by imposing greater insurance costs on enthusiasts, businesses and motor racing teams.

In the meantime insurance premiums could rise by up to 29% from January 2018, and with a further 2% increase in insurance Premium Tax (IPT) announced by the Chancellor in March this year is likely to add at least £5 to the cost of an average premium.

More information can be found at the DfT insurance consultation website

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