What type of insurance do we need for a Vintage Car?
It is often mistaken that classic, vintage and antique cars are all the same. However, that isn’t the case, and there’s a difference between the three. Even though their definitions aren’t very different, they have a different approach to different guidelines.
According to the India Motor Tariff, any car manufactured prior to 31 December 1940 and certified by the Vintage and Classic Car Club of India can be considered a vintage car for the purpose of insurance. Similarly, any car manufactured after 31 December 1940 but before 31 December 1970 is considered as a classic car. But since they are vehicles of a different era altogether, what could be the right type of car insurance for them?
Considering the fact that it is mandatory to have a third-party liability car insurance, it is important to purchase it irrespective of the type of car you have. However, when it comes to comprehensive car insurance, the premiums of these vehicles are extremely high.
Factors that determine the premium for a Vintage, Classic and Antique Car Insurance
Nonetheless, determining the value of vintage car insurance is definitely a tougher task when compared to new car insurance. The value of the car (IDV) is defined on mutual agreement between owner and insurance company. IT also depends on the availability of spare parts.
- Car’s value in the present condition: The term depreciation is widely used to determine the Insured Declared Value of a car. However, in the case of classic car insurance, depreciation is the biggest determinant of the car’s value. Depreciation is nothing but a decline in the value of a car. It even plays a big role when it comes to vintage and antique car insurance. Hence, the older your car, the bigger role depreciation plays in your car insurance.
- Age: Apart from the current market value, the age of the car is also considered. This is done by following the guidelines and determining the type of car you own. Based on which, the insurance company will determine the eligibility of the car for vintage/classic car insurance.
- Estimated cost for maintenance: It is particularly costly for the owner to maintain a high-end car such as a vintage car. It is even more daunting to incur the costs for repairs. Thus, the car insurance premium will be directly affected. An insurance provider will hence do a thorough check to determine the frequency of maintenance required as well as the cost associated with it.
- Spare parts: The insurance company also determines the cost of spare parts of your vintage/classic car. If the spare parts cost a fortune for replacement or repair, then it will be included in your insurance policy.
- Miles covered: The final factor that comes into picture is the number of miles that you have already covered in your vintage vehicle.
Types of Vintage Car Insurance
- Vintage car insurance where the insurance company determines the insurance plan based on the present cash value. In case of a claim, the insurance provider will pay the book value minus the depreciation to the owner of the car.
- Stated Value Vintage Car Insurance where the plan is determined based on the depreciation assessed by the owner of their car’s value.
- Agreed Value Vintage Car Insurance where the insurance company provides you with a policy based on a value that has been agreed upon by both the company and the owner.
It is not common for insurance companies to provide vintage car insurance. As rare as the cars are, the policies available are just as rare. It is easy to buy car insurance online, as it will not take you more than a few minutes.
However, when it comes to purchasing classic car insurance online, it is always better to be sure than sorry.
What to ensure when choosing vintage car insurance online
- Find out what kind of damages the policy covers
- Keep the age proof of the car with you
- Ensure that your vintage car is certified by the Vintage and Classic Car Club of India
Consult a specialist to understand the features and specifications of your car before you determine the value of your car on your own.