Estate Living Digital Publication Issue 3 March 2015 | Page 34

34 RISKY BUSINESS cars are usually deemed collectable items and, therefore, tend to not depreciate in value, in comparison to ordinary vehicles that usually decline in value the moment they are driven out of the car showroom. Because the value of a vintage car is likely to increase over time, coverage is based on an agreed value rather than the actual cash value, with owners and the insurer entering into an agreement centred on an established value at the time the policy is purchased. This value will take into account everything that has already been invested in the car, so it is vital that any modifications and enhancements are fully documented. It’s well worth having the vehicle properly and independently assessed so that there are no doubts about the value and condition in the event of the loss of the vehicle, and brokers may even recommend the completion of a risk analysis to prevent any unpleasant surprises in later life, for both owner and insurer. Information such as previous insurance cover and details of any losses are extremely critical to a new or current insurer and car owners should ensure they provide detailed and sufficient information in regards to their previous insurers and underwriting managers, especially if the car was bought at an auction or in a private sale. Owners should consider various additional factors specifically relevant to vintage cars only, such as ensuring that the cover does not fall away during rallies and motorsport events and adequate or extended cover for components and accessories to guarantee they are covered when on display. The unique and valuable nature of vintage cars, coupled with the fact the good majority of them were built at a time when standard technological features like alarms and central locking were not available, make them easy targets for thieves. Owners should, therefore, ensure their vehicles are safely secured when not in use and adequately insured. The emergence of a constantly escalating percentage of ordinary individuals now investing in a piece of timeless automobiles has led to the unfolding of a niche market. Specialising in everything needed to run and maintain such a car, including insurance, this industry is likely to develop as the nostalgia and demand for vintage continues to increase. Contact (86) 00 22 1 22 www.lifestylegroup.co.za [email protected]