By ITOO Insurance Underwriters
The lockdown stripped classic car collectors of simple joy in life: access to endless, winding tarmac and double-takes all around as you whir on past in your beloved collectible.
But for all the inconvenience, sadness and hardship that Covid-19 and the ensuing lockdown delivered, it has also forced us at iTOO to relook how we’ve been doing classic car insurance.
We’re not merely being romantic when referring to classic cars as works of art. A true classic car appreciates over time and for the vehicle to be considered an appreciating asset it usually has some sort of aesthetic appeal, which could be for its timeless engineering or unique design. The car must have a certain subtlety to it, which lies in its association with rarity, desirability and age. It must, in other words, be art.
In pre-lockdown days, our comprehensive insurance policy covered clients for a maximum of 5 000 km over a 12-month period, which during lockdown made no sense as most classic cars never so much as sniffed a driveway, except maybe for the occasional sneaky long drive to the grocery store during lockdown hours.
With this in mind, we reshaped our comprehensive insurance to a static-risk basis, which now provides cover for fire, theft and accidental damage at the vehicle premises, but excludes accident and third-party cover as the likelihood of getting into an accident while parked is essentially zero. Why pay for full coverage when the vehicle is safely locked away at home?
Having said this, accidents can happen while the vehicle is not on the road, and we advise collectors not to cancel their insurance outright even though their cars sit idly at home.
Typically, a classic car is 20 years or older, but it varies from one expert to the next. The general agreement among collectors is that a car must have historical interest and be worth restoring and/or preserving rather than sending it to the scrap heap, for it to qualify as a true classic. Collectors of classic cars rarely stop at their first collectible.
It is this concept that inspired our next generation of classic car insurance, the Classic Collector insurance. Under this policy, the entire collection is insured on a static-risk basis, which covers fire, theft and accidental damage. The most valuable vehicle is taken out of the equation and insured on a comprehensive basis, which allows the owner to drive anyone vehicle at any time.
When referring to classic cars as works of art. A true classic car appreciates over time and for the vehicle to be considered an appreciating asset it usually has some sort of aesthetic appeal, which could be for its timeless engineering or unique design.
This ensures that all the vehicles are covered. The reality is that all your vehicles will never be on the road at the same time, so why pay comprehensive insurance premiums?
The Classic Collector insurance has the same benefits as our standard insurance policy, but through our depreciation clause, we compensate clients for the loss in value following an incident and restoration costs.
In cases where the vehicle’s value has appreciated while being insured, we will reassess the value of the vehicle. If the Vehicle has increased in value, we will pay the increased amount of the vehicle up to a maximum of 20% of the limit set out in the schedule.
The lockdown has made it clear to us that our clients shouldn’t be paying comprehensive insurance on every classic car in their collection when in reality only one is being driven. Our Classic Collector insurance is tailored by passionate collectors for passionate collectors.