All You Need To Know About Vintage Car Insurance

Vintage cars are a memorable sight for most people. The value of vintage cars is rising by the year too, given its rarity. But as prized as this possession might be, it is hardly without its fair share of responsibility. Aging cars need periodic restorations and tune-ups and a lot of care. So what is the smartest investment a proud vintage car owner should make? Car Insurance, of course!

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Insurance for your car is nothing new.  Most people have their cars insured; in fact, third-party insurance is mandatory in India by law. Third-party insurance is a type of insurance that covers the cost of damages to the third-party, but not the expenses incurred to the first party unless included in the policy.

What about insurance for vintage cars? Vintage car insurance is hardly a mainstream financial facility plan in India. That is understandable as there are only about 1,000-3,000 vintage cars housed in India, according to experts.  

Is it the same as insurance for any other car? It is not!

But before getting into the financial aspect of it all, let us first make sure “vintage” is the right category.

Is Your Car A Vintage Or A Classic?

To begin with, let us take a look at what makes a car vintage or classic. People habitually interchange the terms ‘vintage” and “classic” for cars. The difference is significant because auto insurance companies will offer different insurance packages depending on this factor.

It is necessary to know which group your car falls under before you go asking about insurance.

Technically, they are two different categorizations of cars.

Vintage Cars

Any car manufactured after 1919 up until 1930 is a vintage car. The Vintage and Classic Car Club of India (VCCCI) is the supreme authority on the subject of vintage cars in India. A car is accepted as vintage only if certified by the VCCCI.

Classic Cars

A car manufactured between1940 and 1970 is a classic car.

However, note that some motor insurance companies may have their guidelines while categorizing cars as either vintage or classic. Make sure you check this aspect of any company you go to.

Make sure you approach a car insurance company that is reputable. Not just regarding insurance, but one that has an excellent and strong track record in this niche insurance market of vintage cars. They will decide the best possible policy for the vehicle in question after careful evaluation. Such companies are sure to have specialized insurance plans for vintage cars.

Vintage And Regular Motor Insurance Plans are Different

The two are different but also share similarities. A car is a car after all, but what sets them apart is the age difference between them.

You wouldn’t expect an 80-year-old man to follow the same workout routine as a 20-year-old. No, the two men need different routines as per their needs.  

Similarly, regular cars and vintage cars require different types of car insurance policies. The two have different needs, and so are evaluated differently.

What Is The Difference?

All cars require third-party liability cover as it is mandatory by law. The most significant difference between the two comes under the comprehensive coverage policy. This type of policy safeguards the owner against theft, weather damage, fire, and so forth.

The two policies will also differ when it comes to covering owner-damage expenses. With regular cars, Insured Declared Value (IDV) is the value of the car after depreciation. The maximum amount of car insurance is IDV.

When it comes to vintage cars though, everything changes. Insurance companies will appoint an expert surveyor to write a report on the vintage cars valuation, potential cost of repairs and availability, and the cost of spare parts. As you can imagine, spare parts are not readily available and may have to be custom-made, meaning an increase in insurance premiums.

Vintage cars often enter rallies, exhibition programs, or public events. It is essential to insure the car for damages in such cases. This is done by insuring the car for that specific event unless it is included in the policy terms itself.

What Aspects Of Your Vintage Car Will Decide The Premium?

The auto insurance companies base their premiums on multiple factors.

Value of the car in the present condition

Firstly, the owner and the auto insurance company reach a mutual agreement on the value of the car. The IDV of vintage cars is a tricky one. Hence, it is advisable to have the valuation done by an independent expert on behalf of the owner.

Age of your vintage car

Age and vintage go together. Age is the biggest factor determining if the car is vintage or not. Hence, it is necessary to have possession of all required documents proving the manufacturing date of the car in question.

Potential repair costs

Repair and maintenance costs are quite high for vintage cars. The insurance company will ascertain how regularly the car requires maintenance work and repairs. This will determine the insurance premium.

Spare car parts

Acquiring spare parts is tricky for vintage cars. They import or even manufacture parts, especially for the car, if unavailable. This is bound to cost a fortune. The company will consider this factor before insuring the car.

Miles

The common factor of the miles covered by the vintage car will also be considered. This is a routine practice in motor insurance.

Insure the Old And Keep It Gold

Vintage car owners do not just happen to come by such cars. They have either spent a fortune buying it or have had the car in the family through the generations.

Summing It Up!

In any case, a vintage car is a prized possession for the owner. It is a piece of rare art showcasing the mechanical prowess of humankind for decades.

 It is crucial to safeguard and insure something you hold so dear. Car insurance is a smart investment for any vintage car owner to make. This will not only keep your mind at peace but also save you a fortune over time.  

So go on and get your vintage insured, and better to keep your car safe in the garage till then.

Check the kind of policy terms that each motor insurance company is offering. This is made easier these days by checking online before you decide on the company and policy you find fit.