The 2 Million Euro Classic Car Caper

Dusseldorf, Germany. Consider the case of Germany’s ‘classic car caper’ involving a Ferrari valued at EUR 2.35 million, recently stolen in the town of Dusseldorf during a test drive. Even for those who don’t know a crankshaft from a clutch, the idea of owning a classic car might seem romantic. It’s always a good idea, though, to keep the insurance in mind so the romance doesn’t turn to tragedy.

When bad things can happen to nice cars

According to media reports, the sensational theft involved a 1985 model 288 GTO, of which perhaps fewer than 300 of them exist today. Thus, they are pricey. A similar model with less mileage sold recently at auction in the U.S. for over USD 3 million.

The thief of the purloined Ferrari was described as calm and relaxed, with a serious demeanor. The gentleman took off in the car during a test drive after the salesman got out with the intention of taking back the wheel. Clearly, bad things can happen, even to very nice cars. What should one do?

“There’s no one-size-fits-all way to protect classic cars against theft. Professionals will carefully plan a theft, taking care to observe the owner, his or her environment, and habits with exacting detail. It’s all the more important, therefore, to have good protection in place if worse comes to worst,” according to Christian Misch, Head of Motor, Zurich Germany

Even if you think nobody would dare to steal a rare car, think again. It is possible that it might be stolen to meet a private ‘client’ order – or (horrors) cut down and sold in pieces. Protection is thus the name of the game.

If you have a classic vehicle, perhaps these insurance tips will be helpful. Remember, conditions and cover vary from country to country, and in all cases, it’s best to check with your insurer or broker.

What do I need to know to insure my classic car?

• Keep the policy updated and watch out for value appreciation! While some appreciation might be included in the policy, passage of time and a good restoration can increase the value. It may be money well spent to invest in a professional value assessment and update the policy on a regular basis.
• Be careful when you restore the car. It has to be in its original state or at least be restored with what would be considered appropriate (usually original) parts and components. The restored version should not compromise the original quality. However, adaptations for environmental or safety reasons are generally allowed.
• For classic cars, the condition should be good. In any case, know the market value, as there are likely to be limits that apply and you may need to at least reach a certain value threshold.
• Pay attention where you’re headed on your road trips. There might be geographic limitations in your policy.
• Make sure you understand your cover. Very likely you are only covered for private use. Therefore, it’s probably not a good idea to use your precious vehicle as a taxi. Or enter races with your baby where you’re competing at speed, although Oldtimer and Classic Car Rallies are probably okay. In any case, make sure you know you have the right coverage for whatever activities you choose.
• Check the mileage your policy covers. For classic cars, this might be limited, and when you take off on a jaunt across the continent, you need to make sure you don’t exceed any yearly mileage limits.
• Park the car in a garage. You’re not taking chances, why risk hail damage?
• For periods when you’re not driving your car, for example, when stored for restoration, check whether you need to adjust your policy to insure against fire, theft, vandalism, etc. that could occur when the car is left in storage.
• Know your insurer, or, if you go through a broker, make sure your broker understands classic cars. It’s reassuring to talk to someone who also understands the value and ‘emotional’ attachment car owners have for their vehicles.

It’s an emotional bond

All car owners might feel protective toward their wheels, but classic car owners are a case apart. Just ask Jonathan Harker in sales and distribution at Zurich Private Clients in the UK, who owns several classic vehicles.

“I look at them as things of beauty,” says Harker, who is happy to share pictures on his phone of a Matra-Simca Bagheera he owns – a French sports car dating back to the 1970s. There are also classic Italian motorcycles, and the odd American muscle car in his collection. “I recommend customers have a well-known insurer covering their classic cars. And they need to be certain that claims service is up to the job.”

For those worried about the fate of the purloined Ferrari, there is good news. Thanks to witnesses who offered tips that led to its recovery, the car was recovered by German police. Apparently it’s not easy to steal an exotic bright red vehicle worth millions and simply drive away. Even in a get-away car that could hit speeds of 189 miles per hour.