Home Oldtimer insurance expropriation

Insurance companies 'expropriate' oldtimers

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.

Expropriate oldtimer to prevent retraining

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 certificate belonging to the motor vehicle.

Business regulation wrongly applied

The company regulation is therefore made for vehicles up to 10 years old. However, many old-timer insurers have included this business arrangement in the policy conditions of the old-timer insurance. The disadvantage of old-timers is that, in view of their age, they are quickly declared to be economically total loss. While the vehicle can be driven normally, it must be surrendered to the insurance company. In our opinion, the company regulation is therefore wrongly applied.

Association of Insurers: no expropriation

According to the Dutch 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 will follow. As an insured party, you don't really have a choice. Certainly not in the event of a major damage.

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

Insurance companies 'expropriate' oldtimers

Controlled repair is a solution

However, according to the Verbond, there is the possibility of controlled repair. This means that the customer receives the current value (which is lower than the repair costs) and has the car repaired anyway (must 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 is more difficult in the case of a total loss. If there is also damage to the engine block, suspension, etc., permission will often not be granted.

In that case, the insured can still submit a request for controlled repairs to the Insurance Bureau for Vehicle Crime. This bureau is happy to help. In the opinion of the Association, the company regulation is not intended to bully old-timer owners, but to prevent the car from ending up in the criminal circuit. The Verbond therefore believes that the company regulation must be observed for vehicles up to 10 years old, but that the regulation should not be handled too bureaucratically.

Right to recover 'wreckage' also a condition for FEHAC

The interest group FEHAC has also recognised the importance of this and has made it one of their conditions that old-timer insurance must meet. However, when we look at the companies that are approved according to the FEHAC, we see that some of them still use the company regulation in their policy conditions. On enquiry, it appears that the insurer in question does not use this 'right' in practice, but it is possible.

The following companies allow you to keep the "wreck" in case of a total loss: