Does it cost more to insure classic and vintage cars?
Owning a classic and vintage cars comes at a price – and that can include the cost of vehicle insurance.
So, at the outset, our advice is that you consult an insurance brokerage that specialises in these types of vehicles, and there are several specialist classic and vintage car insurance companies in South Africa.
You can add your classic or vintage car onto your regular vehicle insurance policy if it has seat belts. However, that is not always the best idea because of the many considerations of owning one of these models. Furthermore, many companies will only offer Third Party cover.
Guideline for Insuring Classic and Vintage Cars
Here are some guidelines when considering Classic or Vintage Vehicle Insurance:
- Cover when taking part in rallies, motor shows or using the vehicle for weddings
- Cover for importing spare parts from overseas if not locally available
- A first option clause to buy back parts if the vehicle is written off
- Reduced cover for Third Party, Fire and Theft
- Benefits for low mileage
Another rule-of-thumb is to contact classic car clubs or other collectors for advice before making a final insurance decision. Remember, traditional vehicle insurance is for everyday-use vehicles. While the book value of a traditional vehicle reduces every year, the value of classic and vintage cars can increase substantially. These vehicles fall into the following categories:
- Classic cars – older than 20 years old with an annual mileage of under 10 000 kilometres
- Post-vintage – manufactured between 1930 and the end of the Second World War
- Vintage – cars built before 1930
- Veteran vehicles – built before the First World War
Comprehensive insurance may be too pricey, so at the very least Third Party insurance is essential for classic and vintage vehicles, especially if you take them onto the road. While this type of insurance is the least expensive, it only covers the policyholder for damages to a third party vehicle and not his/her classic or vintage car.
Third Party, Fire and Theft
For a little more money each month, owners should consider Third Party, Fire and Theft – cover for damage to a third party’s vehicle and cover for the policyholder’s vehicle if stolen or destroyed or damaged by fire.
Classic and vintage cars are prized possessions. Not only are they of interest to collectors and dealers, they can also have a great deal of sentimental value to their owners. Maybe you inherited such a vehicle or restored one lovingly.
While it’s a sad fact that insurance will most probably never cover the full or true value of the vehicle compared with what dealers or collectors would be prepared to pay, not having any sort of insurance on a classic or vintage vehicle would be short-sighted. Driving one of these vehicles without insurance is running a great risk.
Third Party could be the best or only option, but owners of classic and vintage cars should really do their homework when selecting an insurance policy for their vehicles. Dealing with a broker who specialises in classic and vintage vehicle insurance is highly recommended.
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