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02 March 2026

Howden Classic Motor Trade Insurance Insight Brief - Quarter 1 2026

4 minutes

The classic and collector vehicle ecosystem enters 2026 in a steady but selective phase. Values have normalised after the post pandemic boom, demand has tilted toward newer modern classics, and risk pressures from theft, weather, and repair inflation remain elevated. This brief summarises what matters now for classic traders, restorers, storage operators, and collectors – and how to translate current evidence into practical insurance and risk actions.

1) Market pulse: confidence returning, but not everywhere

Values reset, select segments resilient. Across the UK market in 2024–2025, most models were flat or declined following the post pandemic surge, with growth concentrated in 1980s–1990s hot hatches and younger enthusiast segments. Older, traditional British classics experienced the sharpest pullbacks, with long standing indices for pre-1970 vehicles at multi-year lows. Auction commentary and specialist market round ups consistently point to this split.

Confidence improving, but uneven by era. Well‑kept, accurately priced classics continue to find buyers, while cars with condition issues, patchy history or unfinished restoration work are taking noticeably longer to shift. Recent auction trends show steady year‑on‑year growth for early‑2000s modern classics, whereas many 1950s models have recorded some of the sharpest average declines.

Auctions corroborate the barbell. UK auction round-ups through late 2024 show stronger sell-through rates below £50k, while higher value lots struggle unless exceptional or supported by flawless provenance. [magnetomagazine.com]

What this means for traders and collectors. Liquidity remains available, but it’s selective. Pricing discipline and presentation matter more than headline market sentiment.

2) Pricing and claims environment: premiums easing, claims costs still elevated

Premium relief, but only partial. UK motor premiums softened through 2025, reflecting improved underwriting discipline and competitive pressure. However, this easing has not translated into lower claims costs, with theft, parts pricing, and labour inflation continuing to drive severity.

Claims inflation remains the constraint. Industry commentary and regulatory reviews highlight longer repair cycle times, higher specialist labour rates, and persistent parts delays. These dynamics are amplified for classics due to craftsmanship requirements and limited supply chains.

Why it matters for classic risks. Even where premiums stabilise, underinsurance and extended repair periods can materially affect outcomes for owners, traders, and workshops – particularly where agreed values or indemnity limits are out of date.

3) Theft: persistent, organised, and increasingly tech enabled

Scale remains high. National reporting confirms vehicle theft remains elevated by historical standards, with volumes through 2024 and 2025 well above pre-pandemic norms.

Organisation and speed. Law enforcement and defence commentary consistently note the role of organised networks, with rapid resale or export, and increasing use of technology driven attacks on modern and classic vehicles alike.

Geographic concentration. London and the West Midlands continue to feature disproportionately in reporting, with risk extending beyond high value vehicles to those targeted for parts or ease of resale.

Practical actions. Layered security remains essential, including tracking, immobilisation, controlled key management, and secure storage. Transit movements should be reviewed carefully, with specialist goods in transit cover and clear handover protocols. Deductibles and security credits should be revisited regularly.

4) Weather and flood: record claims and storage risk in focus

Claims experience worsening. Weather-related property claims reached record levels in 2024 and remained elevated into early 2025, driven by frequent storms and surface water flooding.

Exposure for classic operators. Storage facilities, workshops, and ground floor collections face heightened risk – particularly where buildings are older, drainage is limited, or locations sit within known flood zones.

Risk controls. Flood mapping, water ingress sensors, raised storage, clear bailee responsibilities, and pre-agreed contingency transport arrangements are increasingly important. Nail-to-nail cover should be reviewed for exhibitions, movements, and temporary storage.

5) Restoration and workshop risk: Quality, heatwork, and documentation

Cost and delay pressures. Regulatory reviews highlight rising repair costs and longer cycle times across motor claims. In restoration environments, these pressures are compounded by specialist labour and bespoke fabrication.

Technical compliance tightening. Historic motorsport and period correct builds face closer scrutiny on eligibility and authenticity, increasing the importance of accurate records and sign off processes.

Risk controls. Hot work permits, spray booth maintenance, documented quality checks, and photographic condition records at intake and release help reduce dispute risk and support smoother claims outcomes.

6) Valuations: Who should review in Q1

Underinsurance remains a live risk. With values having softened unevenly since 2022, sums insured can easily drift out of line with market reality, particularly for cars purchased during the run-up.

Evidence from the market. Auction results show a clear divide between affordable, well-presented cars and higher value vehicles that only sell when exceptional. Compromised examples tend to linger or discount.

Client prompt. Collectors who bought between 2021 and 2023 should reassess agreed values. Restorers should adopt stage based sums insured for vehicles mid-build to avoid gaps as work progresses.

7) Where momentum is building

Modern classics driving activity. Vehicles from the 1980s through early 2000s continue to attract younger buyers and first time collectors, supporting transaction volumes and workshop demand.

Accessible price points. Strong sell-through below £50k reflects healthy appetite for usable classics that combine nostalgia with practicality.

8) What to watch out for in Q2 2026

Insurer economics. Forecast pressure on insurer margins into 2026 may influence underwriting appetite, deductibles, and security requirements for specialist risks.

Theft mitigation policy. Continued focus on technology-enabled theft is likely to feed into minimum security standards and risk selection.

Climate resilience. Ongoing industry advocacy around flood defence and planning will remain relevant for storage and workshop locations.

Howden perspective. The opportunity in 2026 is not volume growth but quality risk selection, disciplined valuation, and proactive risk management. Clients who engage early on values, security, and storage resilience are best placed to navigate a selective but functioning market.

Your Howden Classic Motor Trade adviser can help you work through this and make sure your cover remains fit for purpose. To find out more, call 01252 377 546 or click the 'Find out more' button below to complete a short form, and we will get in touch.

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