How to Insure Your Classic Car Properly

Owning a classic car is an aspiration for many car enthusiasts. vintage/ classic cars appeal to the taste buds of hobbyists, collectors, or car enthusiasts looking to revisit the nostalgia of their youth. However, sometimes people who purchase classic cars can be another form of investing in an asset that will be able to maintain its value or appreciate with time. Therefore being able to offer these investors the ability to have a decent return on investment if they can find a suitable buyer at some stage, down the line. However before you hit the road and start your Sunday Drives, there are a few important factors to be considered which relate to the upkeep of the vehicle and acquiring the right type of insurance cover to safeguard cars from Japanese Domestic Market. 

To insure your car you need to understand the value of your classic car: 

Insuring a classic car, such as a car from the Japanese Domestic Market, differs greatly from insuring more modern-day vehicles. When more modern-day cars decrease in value, classic cars often appreciate in value over time. Therefore the first step would be to have an appraisal done to determine your classic car's worth and value. Appraisers are specialists in their field, therefore appointing one who specializes in classic cars will be able to provide you with a detailed assessment based on several factors, such as: 

• Rarity, 
  
• Condition, 
  
• Historical significance. 
  

Cover Options and Special Conditions: 

When considering insurance coverage, classic car owners typically have the same or similar insurance cover options as modern vehicles. However, approaching an insurer who understands that your classic car will appreciate in value instead of depreciate will be the key component here. 

Once you have an understanding of the value of your car, the next step would be to choose the correct insurance coverage for you and your vehicle. This form of insurance includes comprehensive cover, third-party, fire, and theft cover as well as third-party-only policies.

Classic car enthusiasts can also consider taking out laid-up cover, which provides protection exclusively against off-road risks in cases where the vehicle is not being used for a prolonged period. This is often a very popular option for classic car enthusiasts who opt to keep the vehicle in a storage facility or garage for longer periods. 

Insuring modern vehicles what factors are taken into consideration:

• The age of the driver
  
• The address where the car will be stored; 
  
• The driver's claims history;
  
• The age of the vehicle;
  
• The vehicle classification either being a high-powered sports car vs a sedan. 
  

These factors will be considered to determine the most appropriate premium. 

Often insurance companies may have special requirements for ensuring that your classic car has ongoing coverage; which may include:

1. Limiting the mileage on the vehicle per annum

• This is because if you use a classic car daily, the usage will decrease the value of the vehicle as well as several classic car enthusiasts do not use their classic car for their daily commute.
  
• Some insurance companies may require that you provide them with evidence that you have a secondary mode of transport to qualify for certain policies and premiums. 
  
• While mileage restrictions can often help to reduce premiums, it is essential to estimate how often the vehicle will be driven to avoid issues. 
  

2. Storing of these vehicles

• Some insurers require that the vehicle is stored safely and securely and that it is being treated as a valuable asset. 
  
• Such storage facilities may need to be in a secure, climate-controlled environment when not in use.
  
• Storage is essential to maintain the value of your vehicle and preserve the condition, while simultaneously reducing possible theft or damage to the vehicle.
  

3. Fire extinguisher to be in reach

• Due to the higher fire risk associated with older vehicles, some insurers may require that classic cars have a fire extinguisher within reach, should a fire break out. 
  

Additional Add-ons to be considered:

Some insurance companies may offer additional coverage depending on what you use your classic car for, such as possibly for rallies and timed events. Owners who wish to participate in these events may need to consider taking out additional coverage for the cost of the car hire for these events or if the vehicle may break down during the event. 

When considering the different insurance options for your classic car, it is not as simple as modern vehicle coverage, consideration needs to be given to protecting the history and value of your vehicle.