Finance

How Does Car Insurance Premium Vary For a Vintage Car?

Cars have fascinated auto-enthusiasts over the years, and it continues to do so even in today’s times. Loud revving engines, fancy bodywork, performance spares that take your car to the finish line in the blink of an eye are exhilarating. But nothing beats how a vintage car attracts the crowds. It is a complete head-turner.

A vintage car, as rightly said, ages like a fine old wine. The ones who possess such models are a handful in the country. Experts estimate the number to be around 3000 out of the millions of cars that are registered in India.

For a car to be considered as vintage must be registered with the Vintage and Classic Car Club of India (VCCCI). As stated by India Motor Tariff, a car registered before 1940 is a vintage model, whereas the ones after 1940 till the 1970s are termed as a classic car.

Now that you know the difference between a vintage and classic car, how does one plan to protect it? The simple answer is to buy car insurance – the all in one protection to your vintage pride.

As per the Motor Vehicles (Amendment) Act, 2019, it is mandatory for every vehicle to have at least a third party insurance cover, but a comprehensive plan will help you take care of the cost of the repairs. Standard car insurance policies are offered on Insured Declared Value or IDV basis, whereas a surveyor determines the value of your vintage car. Sometimes, the insurance companies accept the valuation as provided by the Vintage and Classic Car Club of India.

Let us look at a few factors based on which the premium to your vintage car insurance is determined –

Age of the Vintage Car

The age of the vehicle plays an essential role in determining the premium amount. The older the car, the higher is its premium. Make sure you have all the registration documents showing its year of manufacture and make in these documents.

Current Value of your Vintage Car

Unlike ordinary car insurance, the value of your vintage car is determined by professional car valuers. Some insurers accept the value as provided by the VCCCI as well. If valued typically like a regular car using IDV, it will not provide its true value to the owner.

Expected Cost of Repairs

The most significant cost for your vintage car is its repair and maintenance. Repairs to such timeless machines require skilled personnel which are not easy to find. Moreover, the cost of spares is exceptionally high, even in the case of spares requiring replacement for regular wear and tear. These factors are accounted for by the insurer at the time of issuing the policy.

Kilometres Driven

Lastly, the insurance company checks for the kilometres driven at each car insurance renewal. It is checked as, the more the vehicle is driven, the higher will be the upkeep required. These vehicles clock minimal kilometres each year, sufficient enough to keep the engine live and running.

So the next time you use a car insurance calculator to compute the premium for your vintage car, remember the above factors play a crucial role in increasing or decreasing the premium amounts.

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