For more on this part of the insurance industry:
1. visit our commercial fleet insurance page for a look at all products in this sector
2. or focus in on all of the specialty vehicles insurance products available on IB Markets!
Specialty vehicles insurance provides coverage for unique or modified vehicles not typically included in standard policies. These include:
Enthusiasts often build ICVs to personal designs, requiring specific insurance coverage.
Australia's rich automotive culture, exemplified by events like the Red CentreNATS festival, showcases the nation's passion for specialty automobiles. This cultural enthusiasm underscores the importance of tailored specialty vehicles insurance.
The Australian specialty vehicles insurance industry is driven by rising interest in rare and individually constructed cars, increasing demand for tailored policies. Additionally, extreme weather events and regulatory updates create new risks for brokers and insurers to manage. Other key issues to be examined include:
data privacy and cybersecurity risks: advanced technology in specialty cars raises concerns about privacy and insurer risk assessments
insurance challenges for EVs: battery replacement and repair costs present unique risks for electric vehicles
insuring rare and left-hand drive models: this creates significant financial challenges for brokers and owners, with high costs for imported vehicles
The growing popularity of vintage cars highlights the need for personalised specialty vehicles insurance, urging brokers to understand client needs and emerging risks effectively.
Specialty vehicles insurance is ideal for classic or vintage cars in Australia. These policies offer agreed value coverage to protect the unique worth of older vehicles. For non-classic or older everyday cars, comprehensive car insurance may be a more suitable and cost-effective option.
Insurance providers also offer specialised benefits, such as restoration coverage or discounts for limited-use vehicles.
Custom exhaust installations may increase premiums under specialty vehicles insurance. Insurers often view such modifications as enhancing performance and risk. Declaring all modifications ensures that coverage remains valid.
Kit cars can be registered in New South Wales. Kit cars, often classified as ICVs, must meet specific standards and guidelines to ensure safety and roadworthiness. Key requirements include:
compliance with Australian Design Rules (ADRs): the vehicle must adhere to ADRs relevant to its date of manufacture
certification by a licensed certifier: an accredited engineer must verify and certify the vehicle's compliance with safety and design standards
issuance of a vehicle identification number (VIN): ICVs require a unique VIN assigned by Transport for NSW
Once these conditions are met, the vehicle can be registered for road use in NSW. Also, insuring kit cars under specialty vehicles insurance can provide extra protection.
Building a vehicle, commonly referred to as an ICV, is legal in Australia. Builders must comply with national and state-specific regulations to ensure safety and adherence to standards.
Individually constructed vehicles (ICVs) are unique, one-off vehicles built by individuals rather than manufacturers. These include kit cars and custom designs, all of which must comply with stringent construction and safety requirements.
Modified (MOD) car insurance, a type of specialty vehicles insurance, provides coverage for automobiles that have been altered from their original manufacturer specifications. These modifications can include performance enhancements, aesthetic changes, or functional upgrades.
Unlike ICVs, which are entirely self-built or kit-assembled, MOD cars start as factory-produced models that are later customised.
Driving a left-hand drive (LHD) car in South Australia is allowed under specific conditions. The vehicle must be at least 25 years old as of 1 January in its year of manufacture and must obtain an exemption for registration. Key requirements include:
exemption: obtain an exemption from the Department for Infrastructure and Transport
registration: the vehicle must be registered in South Australia
compliance: adhere to standards such as fitting mirrors on both sides and appropriate lighting
For further details, consult the South Australian Government's official guidelines for left-hand drive vehicles.
Specialty vehicles insurance is often needed by:
These individuals rely on specialty vehicles insurance to protect their unique investments.
