Classic car insurance can be regarded as a type of comprehensive car insurance, the main difference being you are essentially safeguarding a more expensive vehicle. This presents a greater risk to the insurer, yet it means you should get a sizeable payout in case your car is damaged, lost or stolen.
Even then, a number of exclusions may still apply to your new policy. You are usually not covered under a classic car insurance policy for damage, loss or liability resulting from the following events:
- Vehicle loss or damage that occurs outside of Australia
- Damaged tyres (e.g. punctures, cuts or bursts)
- Repairs to old damage
- Mechanical, structural or electrical failures
- Deterioration, rust, corrosion or wear and tear
- Losses accrued over the period of time when you couldn’t, and/or didn’t use your vehicle
- Costs of fixing faulty repairs – unless the original repairs were authorised by your insurer and carried out according to your claim
- Lock and keypad replacement costs
- Depreciation of your vehicle’s value
- Intentional loss or damage caused by either yourself or someone acting on your behalf
- The legal seizure of your car
- Damage or destruction of your vehicle as caused by an act of war, a riot, civil commotion, etc.
- Acts of terrorism
- The discharge or escape of any pollutants from your car
- Not securing your vehicle after it breaks down, is involved in an accident or is stolen and recovered.
In addition to the above list, you will not be covered should the following events take place:
- Your car was driven by someone who was either under the influence of alcohol or drugs, or refused to undergo a legal drug or alcohol test.
- If your vehicle was stolen and the claim was settled as a total loss, salvage rights will not apply.
- Your car was being used for purposes other than those listed on your certificate of insurance.
Remember to carefully read through the Product Disclosure Statement (PDS) to make sure you have a firm knowledge of what you’re going to be covered for before you buy your classic car insurance policy.