The rarity and the charm of vintage cars amazes one and all. However, not many may know that possessing one would require high maintenance, ‘insurance’ being considered the foremost. This article throws light on the types of vintage cars and their insurance aspect.
Ever seen a Dodge Bros Limo 7-Seater 1935 out on the road and exclaimed at its sight? Those who own such old, classic cars are considered lucky and wealthy. Those who drive it, drive it with an immense sense of pride and prestige. After all, such vintage cars are quite rare to find. It is said that not more than 3000 vintage cars exist in the country today. This also means that the prices of these cars are rising by the day.
For normal people spotting such cars is like a scene straight out of a movie, but only the car enthusiasts and collectors know the real value, specifications, and features of such cars.
That is why people who own such cars are increasingly opting for vintage car insurance. However, before going into detail about it, let us throw some light onto a few basic terms first.
How many of you are aware of the different types of old cars? Such cars can be broadly distinguished into three types, namely classic cars, antique cars, and vintage cars.
- Classic Cars: A car can generally be called classic if it’s 20 - 40 years old. As per the Vintage and Classic Car Club of India (VCCCI), cars manufactured after 1940 but before 1970 are categorised as classic cars.
These classic cars are expected to remain as close as possible to the original manufacturer’s design, features, and other specifications. This is due to the reason that the car falls prominently in value with any sort of change and modification to the car. In fact, the car may even lose its title as a classic car if it goes through too many alterations.
Antique Cars: The mostly widely accepted criteria for a car to be categorised under antique is that it should be atleast 45 years old. Just like a classic car, antique cars are also expected to remain as close to the original model as possible.
Vintage Cars: Coming to vintage cars, the most widely recognised definition for vintage car is a car which was manufactured between 1919 and 1925 or even 1930. Even according to the Vintage and Classic Car Club of India (VCCCI), cars manufactured after 1919 till 1930 can be put into the vintage cars category. Unlike the other two, however, the value of vintage cars doesn't fall after making modifications.
Although these are the most widely recognised definitions, a lot of vintage car insurance companies use different guidelines for categorising old cars. In fact, many a time, classic cars and antique cars overlap with respect to definition just as antique cars and vintage cars do.
These cars are of high value due to their scarcity. Thus, it is highly essential for collectors or owners of such cars to insure them, especially if they are being driven often.
Vintage car insurance would mean securing such priceless vintage cars. Vintage car insurance companies provide a safety net for them in case of any mishaps or emergencies.
Your vintage car insurance for such old cars is broadly based on the following factors:
- Value of the Car in the Present Condition: You must have heard the term ‘depreciation’. Depreciation is a big determinant of the value of any car and eventually plays a big role in your vintage car insurance policy too.
Depreciation is basically the decline in the value of the car due to the wear and tear of it. In fact, from of the time you take the keys of your new car from the showroom and bring the car onto the road, your car will have lost some value.
Thus, the current value of your old car is one of the factors that determines the insurance premium for the policy you opt for. Determining the value of the car for the vintage car insurance is definitely a little bit tougher than determining the value of a new car.
Age: As stated before, there are widely recognised definitions for all three types of old cars. However, your insurance company might follow other guidelines as well to distinguish between them and come up with insurance policies based on that. Thus, the criteria for determining the eligibility of the cars for vintage car insurance might vary from company to company.
Expected Costs of the Car: If the particular car is of high maintenance and the owner has to keep incurring costs for repairs, it will definitely affect the kind of premium required by the car insurance policy. Thus, a thorough check of the frequency of required maintenance as well as the costs associated with it would be done by the vintage car insurance provider.
There are a few other factors which may be considered by your vintage car insurance company such as price of the spare parts of your vintage car. If the spare parts cost a fortune, in case of any damage, your vintage car insurance policy would need to settle that claim.
Therefore, it would be an important factor in determining your premium. The ease of accessing these spare parts is also quite significant in the list of factors. And lastly, the number of miles that have already been completed by your car will serve as a factor too.
Types of Vintage Car Insurances
Your vintage car insurance depends on the present cash value of the car.
A “Stated value” vintage car insurance plan which deducts depreciation as per the owner’s perception of the value of the car.
Agreed value policy which provides you with a vintage car insurance based on a value agreed upon by the owner and the insurance provider.
Although not as common in the case for new cars, there are many vintage car insurance providers that offer policies for vintage cars. There are many things to look into before choosing your vintage car insurance policy such as the kind of damages it covers and the premium it requires. With the age proof of the car, your vintage car needs to be certified by the Vintage and Classic Car Club of India before it can be eligible for a vintage car insurance policy.
It may happen that the owner’s perception of the value of his/her vintage car differs from the vintage car insurance provider’s perception. Thus, it is advised to consult a specialist to understand all the complexities, features, and specifications of the policy before diving into it.