Classic Insurance

Specialised insurance for owners of classic, collectable or vintage vehicles, classic insurance covers more risks than those associated with car insurance. Given the vehicles’ cost and specialty nature of repairs, they require an insurance company that specializes in such vehicles. Classic insurance policies that govern the use of vintage vehicles usually include the average comprehensive car insurance perils, such as fire, theft, hijacking and third-party damage.

They don’t, however, include every day use and usually have a set amount of mileage that they’re covered for. Some insurers only cover classic vehicles for 8,000 km per year. After the 8,000 km are reached, the vehicle stops being covered until the next term.

Premiums are usually paid annually instead of monthly for classic insurance, which often includes malicious damage as well as a cherished claim clause. A cherished claim clause stipulates that should the vehicle be written off (from an insurance perspective), the owner has the first right to buy back the remains from the insurer.

The insurer and the insured will come to an agreement as to the value of the vehicle before the policy comes into effect. Ordinarily, the price of the vehicle is its market value.