Car Insurance

All You Need to Know About Vintage Car Insurance

By Admin
Apr 21, 2021

That ‘VA’ on your Fiat Premier Padmini registration plate is an object of pride. The car is almost a family member – it has been through thick and thin and served you well when all else failed. You wish to offer it the best of everything – from the service station it is revamped to the insurance policy that protects it from the hazards on and off the road. If you are a proud owner who plans on purchasing an insurance policy for your vintage vehicle, read on to learn how to go about it!

Difference Between Vintage, Classic and Antique Cars

Though Vintage, Classic, and Antique Cars are classified based on the premise of the age of the car and may seem like the same thing to laymen, there are subtle differences between them.

Classic carsAntique carsVintage cars
Cars that are between 20 to 40 years old are considered classic cars.Cars that are more than 45 years old are considered antique cars.Different guidelines offer different time periods for classification of a vintage car, however, commonly, cars built between 1919 to 1930 are considered vintage cars.
They are expected to be as close to the stock manufacturer's design and specifications for any modifications will result in the loss of value of the car.With regard to cosmetic and technical features, the cars are to be kept as close to the original make as possible.Unlike antique and classic cars, vintage models do not lose value in case they are embellished or customised. The alterations could be made even to crucial automobile parts like the engine or body design, yet the value will not diminish.
It can include sports cars, convertibles, etc.  
Cars built prior to 1925 cannot be considered classic cars.  

Why should you get vintage car insurance?

Opting for a vintage car insurance policy is a prudent decision to make, especially if the vehicle is being driven around. This car insurance is a necessity to protect the car from the perils it will face on and off the road. There are a number of options available while purchasing a vintage car insurance policy cover. One may purchase either the Stated Value Vintage Car Insurance Plan which deducts depreciation as per the owner’s perception of the car or the Agreed Value Car Insurance where the value is mutually agreed upon by the owner and insurance provider of the car.

Factors Which Affect Your Vintage Car Insurance Premium

  • Value of the car at present: The depreciation of the car plays a significant role in determining the premium of the car insurance policy, and determining the same for a vintage car can pose a slight bit of challenge.
  • Age: Each insurance company will have different criteria for determining the eligibility of a car to be classified as vintage, classic or antique car and thereby determine the suitable policy cover and the premium associated with it.
  • Expected costs of the car: The insurer will check as to whether a particular car requires frequent repairs and servicing and the nature of costs incurred. This is crucial for fixing the premium, as a high-maintenance car will exact a greater premium policy.
  • Distance driven in kilometers: This is an important consideration to determine the premium for both vintage and classic cars insurance covers.

Old Car Insurance Eligibility

The car needs to be certified by the Vintage and Classic Car Club of India (VCCCI) before it can qualify for old car insurance.

As much as possible, insure the vehicle to the value closest to the IDV of the car at the given time. Though insurance companies fix the IDV based on the depreciation rates that are set by the Indian Motor Tariff Act, the IDV for vintage cars is generally agreed upon by the owner and insurance provider. Note that while you may be able to insure the car for a good amount, you may have to pay higher premiums too.  

As stated earlier, car insurance companies broadly categorise the cars as classic, vintage, and antique according to their own guidelines. So, do check with each company before you decide to opt for an insurance cover just in case they do not cover your specific model.

Frequently Asked Questions About Vintage Car Insurance

1. How do policy pay-outs work for vintage cars?

The policy pay-outs are as per the terms and conditions of the insurance policy. It is dependent on factors like the IDV of the car, the premium paid, the add-ons opted in, etc. The pay-out is not any different from a new car insurance policy pay-out.

2. How do I find the right vintage car insurance company?

The following considerations must be kept in mind while opting in for an insurance policy for your vintage car –

  • If the IDV offered is reasonable and appropriate to insure all your interests in the car.
  • If there are any voluntary deductible limits in the policy.
  • If there are any attractive add-on covers available.
  • If your previous claims history needs to be revealed to the insurer.
  • If the insurer has a history of settling claims on time and if their claim settlement ratio is high.
  • If the premium charged is affordable and commensurate to the benefits offered.

3. How is the IDV determined for vintage cars?

The IDV is not determined in the same manner as a new car. The car is categorised as classic or vintage based on the report of the expert surveyor which has details about the valuation of the car, the potential cost of maintenance of the car, the value of the spare parts, etc. The IDV is then decided as per the mutual agreement between the insurer and the insured.

4. Is third-party insurance cover required for vintage cars?

It is the mandate of law that all cars which are driven on the road are to have third-party insurance, irrespective of the age of the car. Therefore, it is indisputable that a vintage car on the road must have a third-party insurance cover.

5. Is third-party insurance cover enough for vintage cars?

The charm of a vintage car comes with a cost – it needs high maintenance and constant upkeep. Third-party insurance might be insufficient to cover for the expenses incurred and will not cover for theft and own damages to the vehicle. 

6. How can a car be eligible for a vintage car insurance policy?

On getting certification from the VCCCI, the car becomes eligible for the car insurance policy.

Conclusion

Your classical beauty has aged beautifully and is in need of great care and protection. Ensure that you research the policies offered by different companies, their terms and conditions, and the benefits derived from them before committing to any vintage car insurance.

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