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Insurers 'expropriate' vintage cars

Alpina' s 2014 vintage car survey shows that many vintage car insurers are allowed to seize vintage cars even if the rightful owner does not want to surrender the vehicle. This stems from the so-called business regulation 16, formerly 14, of the Insurers' Association.

Oldtimer expropriation to prevent re-catting

Company Regulation 16 was created to combat the conversion of cars.
In short, this arrangement means that if a car is damaged to such an extent that it is declared economically or technically total-loss by the loss adjuster, the insurer has the right, with regard to insured cars up to 10 years old, in accordance with the policy conditions, to have the 'wreck' transferred to a party/buyer designated by the insurer. The claim payment will then not follow until the insurer has come into possession of all parts of the registration number belonging to the motor vehicle.

Business regulation improperly applied

So the company regulation is made for vehicles up to 10 years old. However, many vintage car insurers have also included this company regulation in the policy terms of vintage car insurance. The disadvantage of vintage cars is that, given their age, they are quickly declared economically total-loss. While the vehicle can be driven normally, it must be surrendered to the insurance company. In our view, therefore, the company scheme is wrongly applied.

Association of insurers: no expropriation

According to the Association of Insurers, one should not speak of expropriation, because the insured can also choose to keep the car; in that case, only no compensation follows. As an insured person, you don't really have a choice. Certainly not in the case of a major claim.

Especially with vintage cars, you see that it can have an emotional value. For example, the vehicle may have belonged to a deceased family member or it may have required a lot of work. Even if the vehicle is technically total-loss, people do not want to hand it over to an insurance company.

Controlled repair is a solution

However, according to the Alliance, there is the possibility of controlled repair. This means that the customer receives the current market value ( which is lower than the repair costs) and still has the car repaired ( has to pay the difference himself). The damage expert and the insurance company must agree to this. Afterwards, the damage expert checks whether the car has actually been repaired. However, this becomes more difficult with a technical total-loss. Controlled repair is only possible in the case of damage to the vehicle's looks; if there is also damage to the engine block, wheel suspension and the like, permission is often not given.

In that case, the insured may still be able to submit a request for controlled repair to the Vehicle Crime Insurance Bureau. This bureau is happy to think along. In the view of the Association, the company regulation is therefore not intended to bully the old-timer owner but to prevent the car from ending up in the criminal circuit. The Association therefore believes that the company regulation must be complied with for vehicles up to 10 years old, but that the regulation should not be handled in an overly bureaucratic manner.

Right to recover 'wreck' also a condition for FEHAC

The FEHAC has also recognized the importance of this and has made it one of their conditions for old-timer insurance. However, if we look at the companies that have been approved by the FEHAC, we see that a few still have the company regulation in their policy conditions. Upon inquiry it appears that the insurer concerned does not in practice use this 'right' but it is possible.

The companies listed below allow you to keep the "wreck" in the event of total loss: