When most people think of a classic car, they picture a vintage Rolls Royce or a 1970s American muscle machine. But the experts know better. The classic car market is evolving, and what may have once been considered a standard everyday car could be an emerging classic today.

A good example of this trend is the rise of 1980s Japanese sports cars, such as Nissan Skyline and Honda Civic, which are now considered modern classics, says Tom Hall, senior technical underwriter at Dawes Motor Insurance. Also popular are M-series BMWs, and late model Holdens like HDT and HSV Commodores.

“To be a classic car they have to be in good condition, well cared for and maintained,” Tom adds.

Defining a classic car

Desirability is another feature that differentiates a classic car from an old one. “These were the cars that current 30 and 40-year-olds wanted but couldn’t afford when they were younger,” he explains. “By tapping into that nostalgia, these cars have collectability status among these cohorts today.”

Age is also a factor, as cars less than 25 years old are unlikely to be considered classic. Availability of the car is relevant, and while many of these makes and models were mass produced in their day, the limited number of well-maintained or restored vehicles that remain, ensure they become more desirable.

The quirk factor

Tom says some cars may be classic due to factors beyond their performance, such as an interesting or quirky feature.

He cites the example of air-cooled Porsche 911s from the 1980s and 1990s, which are now worth three times their original price, while Mazda’s range of rotary engine powered cars from the 1970s are another example of quirky classic cars with a cult following.

Future classics?

With the rise of electrification, hybrid vehicles and driver assist technology, Tom is of the opinion that purity of the driving experience has been lost.

“We're really getting towards the end of pure cars, and petrol cars in general, as we're about to experience an evolutionary change in cars in the next 10 to 15 years.”

With most car enthusiasts and collectors looking for a pure driving experience, Tom says it will be interesting to see whether new classic cars continue to emerge.

“The beauty of today’s modern classics is that they are new enough to be reliable and have most of the mod-cons we’re used to these days, but they are old enough that they don’t have technology such as driver assists, aids and electronics. People are starting to buy cars and hold on to them if they think they’ll never be able to buy something like this again.”

Examples of these cars include HSV Commodores, particularly GTSRs and W1s, which are still considered brand new, but are now appreciating in value.

The risk of underinsurance

Given the complexity of this market, the risk of underinsurance is a very real one.

“If you’re not an expert, it can be difficult to know whether a client’s vehicle is classic or simply old,” Tom says.

As many modern classics are worth more today than when originally released, a vehicle needs to be identified as a classic and cover placed on a market value or book value basis to ensure it is not underinsured.

“To help ensure your client’s vehicle is covered for what it’s worth we recommend a specialty underwriting agency such as Dawes who keeps up with market developments. Choice of approved repairer also matters in the event of a claim, as these cars may require a specialty repairer to ensure they maintain their value.”

While many owners are aware of their car’s value, Tom says Dawes are aware of owners who have kept their car from new, maintained it and driven it on weekends for the last 20 or 30 years and may not be aware that their car is now an emerging modern classic.

First class insurance with Dawes

Tom says if a broker is ever in doubt, they’re welcome to tap into the expertise at Dawes to find out if a vehicle is a classic. “If they send us through a few details and some images, we can tell them pretty quickly if it’s a classic or not,” he says.

Visit the Dawes website or call us on 1300 188 299 to learn more about our first class insurance for first class vehicles.

Dawes Underwriting Australia Pty Ltd t/as Dawes Motor Insurance (ABN 18 050 289 506, AR No.342982) (Dawes) is an Authorised Representative of SGUAS Pty Limited (ABN 15 096 726 895, AFSL 234437) (SGUAS) and acts for the insurer, Allianz Australia Insurance Limited (ABN 15 000 122 850, AFSL 234708) (Allianz). Consider the relevant Product Disclosure Statement and Target Market Determination available by contacting Dawes on 1300 188 288 or visiting www.dawes.com.au, before deciding if it is right for you.