Classic Car Market Softens as Insurance and Value Trends Shift

New research reveals a surprising shift in the UK classic car market: values are falling while insurance remains surprisingly affordable—a combination reshaping the ownership landscape.

The Heritage Classic Car Report 2025 found that 88% of the 200 most popular classic models declined in value over the past year, putting prices lower than at any point since 2022. In parallel, the average UK classic car insurance premium dropped to just £123 annually, making the hobby more accessible to new buyers.

Experts link the depreciation trend to a rising influx of pre-owned classics to market, compounded by declining discretionary spending. Meanwhile, insurers benefit from restricted annual mileage and off-road storage requirements, which lower claim risk and translate to cheaper cover.

The shift has opened the door to younger or first-time classic buyers—but also raises risk. Specialist insurers warn that valuation blind spots and rising restoration costs (impacted by trade tensions and parts scarcity) can lead owners to under-insure valuable cars unknowingly.

Despite the softness, the broader trend may help sustain interest in petrol-powered classics exactly when their internal combustion engines are under regulatory threat—serving as a unique reminder that automotive heritage still holds appeal for a new generation.