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If you have unusual hobbies, you often also need special insurance, the protection of which goes far beyond the standard benefits. This applies to extreme sports, precious jewellery, expensive furniture or real estate. In particular, of course, also for oldtimers and youngtimers who not only need care, but also need comprehensive protection. Properly insuring a classic car, what should you pay attention to?
Properly insuring classic cars – what needs to be considered?
Chrome flashing treasures need adequate protection. That's why the ADAC (s) even offers its own classic car insurance, which includes, for example, an annual mileage of 9.000 kilometers. In most cases, this should be completely sufficient, especially for vintage cars, since these are mostly collector's items that are rarely (r)used as a business vehicle.
A high mileage should therefore hardly be a problem for vintage cars. But why do you have to think about special insurance at all?
What is time value?
Well, here the so-called time value plays a decisive role. This quantifies the value of a vehicle in the event of an accident, i.e. the amount that is reimbursed in the event of a total loss. We all know that almost every vehicle loses value rapidly.
The loss in value is enormous, especially in the first few months and years. Even and especially luxury brands can lose 60 percent of their original value within a five-year period. On the other hand, there are so-called residual value giants that leave significantly fewer feathers when it comes to the topic of current value.
Of “residual value giants” and vintage cars
The residual value giants often include off-road vehicles or vehicles from the SUV sector. But even some small cars or the low-cost provider Dacia are hard to beat when it comes to value retention. Otherwise, however, the premise applies that as soon as we leave the dealer's yard, we have already lost a few percentage points in value. In fact, a car that is driven a lot can lose 15 percent of its original value within a year. And that despite careful care.
Almost paradoxical: cars whose value is increasing
But that is exactly what is completely different with classic cars and makes them so special, also from an insurance point of view. Because the value of a well-preserved classic car will usually far exceed its original production and purchase price. In addition, it is always assumed that such vehicles will continue to increase in price in the future. So how can a sensible insurance package be put together from these points of view?
Well, with this consideration, a new term appears, namely the so-called recovery value. With some companies you can insure exactly this. Or you can choose between market, replacement and restoration value insurance. The vehicle is then rebuilt, which is otherwise "only" replaced with an equivalent product. There is also, just for Oldtimer, also so-called all-risk insurance, which not only protects against the loss of the car, but also against damage and destruction.
The no-claims bonus thing
In the case of classic cars, the increase in value, in itself a great thing, can become a problem in terms of insurance law. After all, the owner of a car that is constantly increasing in value could quickly become underinsured. It therefore makes sense if a certain (annual) increase in value is already fixed in the policy.
With certain providers, the classic car insurance therefore already includes a provision of 25 percent. Nevertheless, owners of historical treasures are well advised to keep an eye on the market and the prices and to contact the insurer in the event of larger increases in value. After all, everyone wants an adequate sum to be paid if the worst comes to the worst (which is annoying enough per se).
Incidentally, no no-claims discounts are usually charged for special classic car insurance policies; this means that you won't be automatically upgraded after an accident either!
Loyalty to the company?
In fact, different providers could even be entrusted with liability and comprehensive insurance. This can make good sense, especially for vintage and youngtimers. Namely in such a way that you take out liability insurance for your everyday vehicle, including the classic car, with company X and then take out special comprehensive insurance for your automobile darling with insurer Y, who is particularly familiar with this topic.
Note: No vehicle needs to have an H license plate to be insurable as a classic car.
Note the small print!
Nevertheless, owners of vintage cars should rather ask more than once too little. This raises the question of whether fire, explosions and natural hazards (i.e. storms, avalanches and floods) are also insured.
Short circuits can also be a tricky subject, especially in older vehicles. Not to forget the spare parts, which are often worth real money. So what about bumpers or fenders that an avid mechanic stores in his garage? Of course, transport damage (many a classic car has slipped off its trailer) should also be covered.
Incidentally, for some classic car and special insurance policies, in particular the above-mentioned all-risks coverage, an expert opinion and a certain minimum value and condition of the car are required in order to be able to take out such a policy at all.
A short conclusion:
This means that you should also take enough time for insurance law issues before purchasing a vintage car. A Insure classic cars properly: This also includes very banal considerations such as the question of whether damage-free years later can be transferred to another, "normal" vehicle?
