Buying Insurance Policy For Classic Car In India

For a lot of car enthusiasts, nothing matches the charm of having a beautiful classic car. While the value of modern vehicles depreciates year-on-year, the value of these old beauties continues to increase as they age.

But these prized possessions are high-maintenance too. They regularly require expensive restoration and tune-ups so that they continue to look and work worth their value. This makes car insurance a must for every proud owner of these classic beauties.

But do the standard third-party or comprehensive policies cover classic cars too? No, they don’t. There are antique car insurance plans for such vehicles. Before understanding what this type of insurance is, let us first try to know how insurers distinguish between classic, antique, and vintage cars.

How are Classic, Antique, and Vintage Cars Differentiated?

The cars are differentiated based on their manufacturing year. The VCCCI (Vintage and Classic Cars Club of India) has defined the guidelines for this differentiation.

  • Classic Cars-

The cars that are 20-40 years old are considered to be classics. Note that the vehicle should be as close to its original specifications and design to be regarded as an antique.

  • Antique Cars-

Cars that are more than 45 years old are considered to be antique cars. Just like classics, antique vehicles should also be as original as possible.

  • Vintage Cars-

Cars manufactured between 1919 and 1930 are known as vintage cars. A vintage car will be considered a vintage even if it is modified.

While most insurers generally follow the same guidelines of VCCCI for old car insurance, some insurers do have their own guidelines.

What is Classic Car Insurance?

Antique car insurance is a separate car insurance category for old cars. Classic car insurance is a type of antique car insurance that is available for cars certified as a classic by the VCCCI.

Just like you buy third party car policy for standard cars, you can purchase third-party or comprehensive insurance for classic cars too. While third-party insurance is mandatory, comprehensive coverage is optional.

Comprehensive classic car insurance plans are generally known to be expensive but are highly recommended for classic cars that are still driven.

They offer financial assistance to repair your vehicle or replace the parts in case if it suffers damage in an accident. However, the coverage will only be up to the maximum coverage of the policy.

How is the Premium for Classic Car Insurance Calculated?

When you buy car insurance online, your insurer considers several different factors for calculating the premium. The same is true for classic car insurance too. Some of the most important factors that decide the premium of such car insurance policies are-

  • Car Age-

The age of your car is one of the biggest considerations. You will be required to submit age proof of your vehicle and also get it verified by the VCCCI.

  • Current Value of Car-

As there is no fixed market value of classic cars, their value in the current condition is decided through a mutual agreement between the insurer and the car owner.

  • Potential Cost of Repairs-

As such cars regularly require repairs and maintenance to remain in pristine condition, the insurer will focus on the possible cost of repairs for calculating the premium.

  • Potential Cost of Spare Parts-

Even the spare parts of old cars are known to be very expensive, and their potential cost will impact the insurance premium.

Often the perception of classic car owners with regards to the current value of their car is very different from that of the insurer. In such cases, car owners are advised to hire a consultant or specialist who can help you find the best car insurance plans.

Buying Insurance for Classic Cars

Not all car insurers in India offer insurance for vintage or classic cars. A quick online search could help you easily get a list of insurers that offer insurance products for old cars. You can then get in touch with the insurer to know more about their offerings.

It is always better to consult at least a few insurers before making a decision. This will help you select classic car insurance that will offer the best protection to your prized possession.