Classic cars have shown a faster increase in value than other items in the luxury goods category says Sharon Paterson, CEO of Infiniti Insurance.
“For the decade ending in December 2018, the Knight Frank Luxury Investment Index — presented during the VCCM HAGI conference — has measured collectable cars as gaining 258% in US dollar terms, trumping the 10-year returns of watches, wine, jewellery, stamps and art according to a report in Business Day,” she points out.
“The reality is these cars are an investment just like art and are in most cases viewed in dollar, pound and euro terms and as such are a hedge against the rand. The rarity of many, with their value continuing to increase, makes replacement or repair very difficult without insurance.
“The South African market in this sector is particularly vibrant. A collectable is an investment enjoyed aesthetically that provides a currency hedge.
“Infiniti has a diverse range of insurance solutions for the short-term insurance market and to this extent we partner with specialists in the field to provide the best solutions for clients. In this instance we have partnered with Roxsure Insurance Brokers headed up by Jason Grove.”
In protecting these investments, Grove points out that Roxsure is one of the few brokers in the market that deals with classic, vintage and collectables as a bespoke niche market line item. “We have specific expertise, valuation tools and procurement processes that allow us to be able to engage in that market. As with all our valued clients, we take a personal approach to our Classic Car owners. As a Roxsure client you will speak to the same well qualified and competent person each time you call.
He points to tailored policies enabling a collector to enjoy and drive a special vehicle. “We have a broad approach of cover offered from the pre-1950 Vintage models to the post 1950 Classics. We also look at recently produced vehicles of a limited edition.
“The value of classic cars is often determined by who owned them in the past such as famous actors or racing drivers, or the fact that they introduced new technology. These are among the attributes that have propelled collectable cars into the forefront of appreciating investments.
“We run agreed values with our clients and we have an in depth knowledge of the world markets on these vehicles – one of our executives in the business is also an avid collector. We are able to not just offer insurance but we can relate to our clients and engage with them on their passion,” he says.
Grove himself, a collector and expert in the field of old and rare cars points to the Historic Automobile Group International (HAGI) Top Index which shows an increase in value of more than 500% in the past decade compared to the S&P500 of 60% in the same period.
“There is a huge local interest in these cars and shows around the country often draw crowds of 10 000 at a time,” he says. It is the same massive market here as anywhere in the world. Many recall the joy of driving a fast or rare vehicle and the nostalgia associated with the roar of exhausts. Ultimately the motor vehicle as one of the most important inventions has helped shape the world as we know it today.
“We work with our clients when it comes to repairs as these are specialised items and often the client has a trusted repairer or parts facility that he uses. As such we take advice and work alongside our client and assist in getting them back into the position they were. A standard, fully comprehensive policy may not give the cover needed. Our policy is tailored to the specific needs of the Classic Car owner, from cover during shows to use to and from work” Grove concludes.
Infiniti Insurance Limited is an A-(ZA)- rated short-term insurer that writes all classes of business including Aviation, Marine, Watercraft, Engineering, Liability and Guarantees. “The Infiniti advantage lies in the quality of our service and our commitment to excel,” Paterson says. She closes with a quote from Sir Henry Royce on the company’s value proposition: ‘The quality is remembered long after the price is forgotten’.
How Classic cars classified
- Antique Cars – Built before 31st Dec 1904
- Veteran Cars – Built between 1st Jan 1905 & 31st Dec 1918
- Vintage Cars – Built between 1st Jan 1919 & 31st Dec 1930
- Post Vintage Cars – Built between 1st Jan 1931 & 31st Dec 1945
- Classic Cars – Built between 1st Jan 1946 & 31st Dec 1960
- Classic Cars – Built after 1st Jan 1961
Infiniti Insurance Limited is an A-(ZA)-rated short-term insurer that writes all classes of business including Aviation, Marine, Watercraft, Liability, Engineering and Guarantees. The Infiniti advantage lies in the quality of our service and its commitment to excel