Vintage car insurance – what you need to know:

There’s something undeniably charming about vintage cars. Their old-school appeal only adds to their growing value. If you own or are considering purchasing a classic car, it’s crucial to understand the insurance coverage options available for these unique vehicles. In this article, we’ll delve into the various types of Vintage Car Insurance available to classic car enthusiasts. We’ll also discuss the best ways to insure your classic vehicle through car insurance online.

What are vintage cars? What kind of insurance do they need?

Vintage cars are automobiles that are known for their elegant and unique designs. These cars were built during a time when the automobile industry was still in its early stages, and they often have distinctive features such as wooden bodies, hand-cranked engines, and large, spoked wheels. Here, it is important to note that people often refer to classic cars as vintage cars and vice versa, which is incorrect. It is important to understand the distinction between them, as this can impact your car insurance options.

Vintage Cars:

Vintage cars are automobiles that were manufactured between the years 1919 and 1930, a period that is commonly referred to as the "Vintage era." The Vintage and Classic Car Club of India (VCCCI) is India's ultimate authority on vintage cars. Only vehicles with VCCCI certification are recognised as vintage vehicles. The value of these cars does not change even if modifications are made to them.

Classic Cars:

Classic cars are those produced between 1940 and 1970, and in order to retain their classification, they should not have been altered significantly from their original make and specifications. Any excessive modifications will cause a car to lose its status as a classic car.

Do vintage cars need car insurance?

In India, the Motor Vehicles Act 1988 makes it mandatory for all vehicles to have at least a third-party liability insurance policy. This applies to vintage cars as well, which means that vintage car owners must have at least a third-party liability insurance policy. In addition, vintage car owners may choose to purchase comprehensive vintage car insurance that provides additional coverage for theft, damage, or other risks associated with owning a vintage car.

Things to consider while obtaining car insurance for classic and vintage cars

Agreed value coverage

Unlike regular cars whose value depreciates over time, classic and vintage cars can appreciate in terms of value. Standard motor insurance policies often use actual cash value (ACV) to determine payouts in the event of a total loss. However, this may not be suitable for classic cars due to their increasing value. With agreed value coverage, you will rest assured that you receive the agreed-upon amount if it is damaged beyond repair.

Limited mileage

Classic and vintage cars are typically not driven as frequently as everyday. These stipulate that the car should not exceed a certain number of miles per year. By opting for limited mileage coverage, you can often secure lower insurance premiums, as the risk of accidents or damages is reduced.

Specialized repair shops

Searching for a qualified mechanic who specializes in classic and vintage cars can be a challenge. Therefore, when choosing a classic vehicle or vintage vehicle insurance for your classic beauty, it's essential to inquire whether the policy allows repairs at specialized repair shops. These shops have the expertise and knowledge to handle the unique requirements of classic and vintage cars, ensuring that any repairs are performed correctly.

Storage and security

Classic and vintage cars are more susceptible to theft and vandalism due to their uniqueness and high value. Proper security measures could be included with features such as alarms, tracking systems, and immobilizers along with storage garage facilities. Complying with these storage and security requirements may help reduce insurance premiums.

Documentation and appraisal

When insuring a classic or vintage car, proper documentation is crucial. You may be required to provide detailed photographs, maintenance records, restoration documentation, and even professional appraisals to establish the car's condition and value. These documents help us to determine the appropriate coverage and ensure that you receive a fair settlement in the event of a claim.

Why is it essential to have insurance for classic and vintage cars?

Car insurance for classic and vintage cars is necessary due to several reasons and special considerations. Let's explore why it is essential to have an old car insurance policy specifically tailored for these unique vehicles:

●      Car insurance provides financial protection by covering these expenses, ensuring that you don't have to bear the entire financial burden out of pocket.

●      Classic and vintage cars are often rare, and finding original replacement parts can be challenging and expensive. Insurance for old cars takes into account the difficulty of obtaining authentic parts, making it easier to restore the car to its original condition after an incident.

●      Insurance policies for these vehicles often offer limited mileage coverage, which takes into account the reduced risk of accidents due to limited usage which results in lower insurance premiums.

Conclusion

For those who appreciate history, design, art, and craftsmanship, classic vehicles are a prized possession. While some buy such cars as an investment, for some, it is pure love for the vintage. With the increasing popularity of vintage cars, car insurance companies offer well-suited vintage car insurance. If you need to buy or renew your insurance, you can do it in easy and simple steps via car insurance online, just make sure you give it all the protection it needs.

Remember to consider all special factors when selecting our insurance policy at Zurich Kotak General Insurance.

FAQs

What is the difference between "Classic" and "Vintage" for insurance purposes?

While terms vary by insurer, Vintage cars are typically those manufactured between 1919 and 1930 (or are 50+ years old). Classic cars are usually 20–40 years old. To qualify for a vintage policy, the car must usually be in original or restored-to-original condition.

Can I get vintage insurance if my car is currently being restored?

Yes. Many specialty insurers offer "Restoration Coverage" or "Laid-up Cover." This protects the vehicle while it is a "work in progress" against fire, theft, or damage in the garage, even if it isn’t road-ready.

Why is vintage insurance often cheaper than regular car insurance?

Because vintage cars are driven less frequently and are usually meticulously maintained in secure garages, insurers view them as lower risk. This often results in premiums that are 20–40% lower than standard policies.

Are rare spare parts covered?

Specialized policies often include coverage for spare parts and may even pay to have parts fabricated if original components are no longer available on the market.

How is the IDV (Insured Declared Value) calculated for a vintage car?

For regular cars, IDV is "Showroom Price minus Depreciation." For vintage cars, IDV is determined by Mutual Agreement between you and the insurer. Since vintage cars often appreciate in value, you should provide an appraisal report from the VCCCI to justify a higher IDV.