How to insure your classic car: tips for collectors and enthusiasts

Across Europe, collectors of vintage and classic cars are experiencing a resurgence of interest in their extraordinary assets. In particular, rare vintage and classic car models often generate a 10-15% annual value increase.  

It’s noticeable that Malta is seeing a steady rise in vintage car ownership, with the European classic car market reputed to be worth over €15 billion. In fact, data shows that there are over 3 million classic vehicles registered in the EU.

This trend is reflected in Malta, as there is an expanding collector community, taking part in regular classic car shows and joining clubs, including the Old Motors Club.

However, it’s not just nostalgia that’s powering this interest: vintage vehicles offer a glimmer of prestige and preferential insurance terms. You might not be aware that the classic car market has outperformed gold and property in certain years over the past few decades.

Rare models from classic car brands synonymous with power and elegance, such as Ferrari,  Jaguar and  Porsche,  have substantially appreciated in value. One famous example is the Ferrari 250 GTO. Arguably one of the most expensive cars in the world, it is currently valued at €59 million.

In this article, we explore how to insure your classic car and provide tips on how to secure the right classic car insurance for your vintage model.

Contents:

• What is classic car insurance?
• How does classic car insurance work?
• Best tips for classic car insurance in Malta.
• Protect your classic car with insurance from GasanMamo.

What is classic car insurance?

Classic car insurance is a special type of car insurance designed for older vehicles that are likely to be collectable models. In general, a classic car insurance policy will cover classic vehicles that are used rarely and usually for leisure and show purposes. 

In Malta, Transport Malta issues special licences for cars over 30 years old if they meet certain criteria particularly having mainly original parts and being kept in a good condition.  This plate results in a much lower annual road license fee but an annual limitation of 2,000 kms applies.  Not all vehicles over 30 years old can be considered as vintage or classic, especially if they are used daily and are of a common make and model. Classic car insurance, which is generally cheaper, is usually reserved for vehicles that are genuinely collectible and preserved in excellent condition, with historical or enthusiast value. Old vehicles of common make or in everyday condition would therefore not qualify under this category. There are several factors that impact insurance terms, including more restricted usage, lower mileage and the car’s collectable status.

How does classic car insurance work?

In order to provide the correct classic car insurance premium, insurance providers look for  vintage  or  classic car models that offer a rare find or foster historical interest. Ownership by enthusiasts, who know how to look after a classic car, will also help insurers generate the right level of classic car insurance.

Cars that hold historical value include classics such as the MG B,  Ford Mustang, VW Beetle and the Triumph Spitfire. Nevertheless, these are not the only models taken seriously by the classic car market, with many other cars being viewed as collection-worthy today.

To qualify for classic vehicle insurance, the car must retain most of its original parts. Notably, any considerable modifications may mean the car can’t be covered under a vintage car insurance policy. You should also make sure your car is roadworthy and in showroom condition so you can arrange insurance for your classic vehicle.

Best tips for classic car insurance in Malta

Every classic or vintage car is unique in its own individual way. However, to ensure you can secure classic car insurance for your vintage vehicle, take note of the following helpful tips:

• Get a certified professional valuation: this will determine the vehicle’s market value and is likely to be required by the insurer.  Ultimately, a valuation should ensure the car is properly insured for its full worth in case of damage or theft.
• Vintage motorcycles insurance restrictions: these have the same insurance restrictions plus similar benefits, provided they meet the insurer’s standards.
• Multiple classic car ownership: can help owners to benefit from favourable terms if driving is restricted to the insured only across all vehicles.
• Keep a note of your annual mileage: policies typically include annual mileage limits, an example of this would be around 2,000 miles per year.  This reflects the limited use of vintage cars, often reserved for shows, parades, or occasional drives. 

Safeguard your classic car with insurance from GasanMamo

GasanMamo’s classic vehicle insurance helps protect your valuable vintage model so you can enjoy leisurely drives for years to come. As Malta’s foremost classic car insurer, we make sure your vehicle has the correct coverage to give you peace of mind.

As part of our classic car insurance policy, we offer multi-vehicle cover at a reduced cost and attractive cover terms. To discuss the possibility of insuring your classic vehicle, talk to our friendly team of insurance experts, who can offer you specialised insurance advice and guidance.