With their old, classic charm, vintage cars are fascinating, rare, and costly. Not only is their purchasing cost high, but the expenses to maintain them are on the higher side, too. The general definition of a vintage car is decided by the manufacturing date; it should have been built between 1919 and 1930.
Did you know that there is vintage car insurance? Let us discuss this concept of old car insurance in detail.
Types of Vintage Car Insurance
The Vintage and Classic Car Club of India (VCCCI) must officially certify a vehicle as vintage. There are three types of vintage car classifications —
- Vintage Cars: According to VCCCI standards, cars manufactured between 1919 and 1930 are vintage. In contrast to the other two categories, the value of a vintage car remains relatively stable even after undergoing modifications.
- Classic Cars: Vehicles produced between 1940 and 1970 fall under the Classic car category. These automobiles should remain unaltered and maintain their original specifications. Any extensive modifications disqualify a car from being classified as Classic.
- Antique Cars: Vehicles manufactured from 1930 to 1940 are antique cars. Antique cars should undergo minimal modifications and retain their original design.
Regarding insurance, there are only two car categories: Classic and Vintage. Antique cars are included in the Classic category.
There are two types of vintage car insurance —
- Stated Value Vintage Car Insurance: This plan factors in depreciation based on the owner’s estimation of the car’s worth.
- Agreed Value Policy: This vintage car insurance sub-category is based on a mutually agreed-upon value between the owner and the insurance provider.
Factors, such as premium costs, must be considered before selecting a vintage car insurance policy.
Factors Impacting Vintage Car Insurance
Current car value significantly impacts insurance rates. Unlike modern cars with fixed values, vintage car valuation proves challenging. The following factors affect old car insurance —
- Car Age: To value a car as per its age, insurers refer to VCCCI guidelines. The criteria for categorisation may vary among car insurance companies.
- Maintenance Costs: Vintage cars may need frequent repairs, leading to increased premiums. So, car insurers conduct thorough vehicle inspections to gauge expected maintenance expenses. The higher the maintenance cost of a vintage car, the higher the insurance premium on the policy.
- Spare Parts Cost: Vintage car spare parts are scarce and costly. They often require to be imported. This factor significantly influences insurance premiums as the rarer the spare part, the higher the premium.
Conclusion
Vintage cars are high-priced. Owning a vintage car comes with exorbitant maintenance costs. This has made the concept of making vintage car insurance increasingly popular. But before purchasing vintage car insurance, it is important to determine the car’s category.
Factors influencing vintage car insurance include the age of the car, its current value, expected maintenance costs, and the price of spare parts. Vintage car owners often face difficulties in sourcing costly spare parts. Some of the spare parts may even need to be imported.
Certification and evaluation from the VCCCI are essential to secure vintage car insurance. Based on the assessment, owners and insurance companies can mutually agree on the sum insured. It is imperative to thoroughly review policy terms and conditions to understand the coverage provided, particularly the limitations and exclusions.
Vintage cars frequently participate in rallies, exhibitions, and public events. Old car insurance should cover any damage incurred during such occasions through separate event-specific coverage or as part of the policy terms.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.