Protecting Your Classic Car in NZ: Coverage Beyond Standard Insurance

Introduction

A classic vehicle can have a value that ordinary motor-insurance assumptions do not capture well—particularly after restoration, careful preservation or hard-to-source parts work. In New Zealand, motor-vehicle insurance is not compulsory, and the ACC levy is not motor-vehicle insurance. However, choosing no cover leaves the owner to meet vehicle-loss and liability costs themselves.

Specialist classic-car cover is not automatically better or cheaper than ordinary cover. Its value is in whether the policy wording, schedule and permitted use fit the vehicle’s actual condition, value and plans. In our editorial review, the most important comparison is not the product label; it is the settlement basis, exclusions, use conditions, excesses and claims obligations. For a broader overview, see our New Zealand car insurance guide.

This guide reflects publicly available policy and consumer information reviewed on 17 August 2026. It is general information, not personalised insurance or financial advice.

Classic cover versus ordinary motor insurance

Classic-car insurance is often written through a specialist product or arranged through a broker, but the details vary materially between insurers and policies. Do not assume that every policy includes restoration, rallies, spare parts, salvage retention, roadside assistance or a choice of repairer.

One central distinction is how the vehicle is valued. Consumer Protection describes market value as what the vehicle was worth immediately before it was damaged. Agreed value is a value agreed with the insurer when cover starts and at renewal. For a vehicle with unusual provenance or restoration work, an agreed value can make the insured amount clearer in advance—but the schedule and wording still determine settlement, applicable deductions and what happens to salvage.

For example, AMI’s current classic wording allows either agreed-value or market-value cover where shown on the schedule. On an agreed-value total loss, it says the sum insured is payable subject to applicable deductions. It also addresses a salvage-value deduction where the policyholder keeps the vehicle. Read the exact wording rather than treating “agreed value” as a guarantee of an unrestricted payout.

What to compare before requesting quotes

Agreed value: useful, but read the schedule and deductions

An agreed value is set with the insurer, rather than left solely to a post-loss market assessment. That can be especially relevant where the vehicle’s condition, originality, documented history or restoration spend affects its value.

Before accepting the policy, check that the schedule identifies the intended basis and amount. Ask how renewal adjustments work, whether an appraisal is wanted, and whether deductions can apply for excesses, outstanding premium or salvage retained by you. Keep restoration invoices, parts receipts, dated photographs, condition records and any independent valuation. These are sensible records, not a universal list of entry requirements: ask the proposed insurer what evidence it needs. AA’s current claims wording lists items such as receipts, valuations, photographs and financial statements as examples of proof of ownership it may request.

Storage, restoration, rallies and other use conditions

Policy labels can conceal important boundaries. AA currently offers Classic Vehicle Insurance in two cover types: Comprehensive and Storage and Restoration. Under AA’s current Storage and Restoration wording, cover applies while the vehicle is stored, undergoing restoration or transported by another vehicle. It does not cover the vehicle while it is driven on the road under its own power.

Event use also needs close attention. AA’s current Comprehensive wording covers rallies and time trials only where they are organised by a recognised official vehicle club and are held on roads open to the public at the time. That is a specific policy condition, not a general rule for all classic policies or all motorsport-related activity.

Similarly, do not rely on a universal “weekend only” or “not a daily driver” assumption. Eligibility and permitted use are insurer-specific. AMI’s current classic wording permits personal and business purposes except for listed excluded uses, while its optional lay-up cover has separate driving-use limits. Describe your real intended use accurately when obtaining quotes.

Changes, modifications and claims: act promptly

Restoration projects can change quickly. Notify the insurer as soon as possible if relevant circumstances change, rather than waiting until renewal. AMI’s current wording specifically requires notification of changes that may affect the likelihood or amount of a claim, schedule inaccuracies, specified modifications, other insurance, newly excluded use and potential claims. It also says modifications that prevent the vehicle meeting WoF or CoF standards are not covered.

After an incident, follow the insurer’s instructions. AA’s current wording requires reasonable steps to prevent further loss, police reporting for theft, burglary or vandalism, prompt notification, no admission of liability or unauthorised settlement, and making the vehicle available for inspection before repairs. Repairer choice and claim processes can differ by policy, so do not start repairs or settle a third-party demand before checking the claims instructions.

Direct insurer or broker-arranged cover?

A direct insurer provides its own product information and wording. A broker can help arrange cover with an underlying insurer, but the broker is not the insurer. JRI, for example, describes itself as a broker and licensed Financial Advice Provider, and says it can help arrange cover for classic, specialty, racing and performance vehicles.

If using a broker, request the identity of the underlying insurer, the full policy wording and schedule, and a clear explanation of remuneration and fees. JRI’s published general-insurance disclosure says broker fees may apply and lists unique-vehicle fees for new business and renewals; the exact fee should be confirmed in the quote. This is a practical comparison step, not a reason to assume that either a broker route or a direct route will suit every owner.

Consumer protections and resolving concerns

Under the current New Zealand regulatory framework, insurers serving consumers generally need a financial institution licence unless an exemption applies, and licensed insurers need a fair conduct programme. If you believe an insurer has treated you unfairly, the Financial Markets Authority says to complain to the insurer first. If the issue remains unresolved, its dispute-resolution scheme can provide free, fair and independent dispute resolution.

What to Do Next

1. Prepare one consistent description of the vehicle: its condition, value basis, storage address, drivers, modifications and intended use.
2. Obtain like-for-like quotes using the same insured value, use, drivers and excess where possible. Do not compare premiums alone.
3. Read the current wording, schedule and any endorsements before buying. Check total-loss settlement, salvage, excesses, legal liability, use exclusions and restoration provisions.
4. Keep ownership and restoration records up to date, then notify the insurer promptly about relevant changes.
5. Save the insurer’s claims instructions before an incident occurs.

References

• New Zealand Consumer Protection — Car insurance
• Financial Markets Authority — Insurance
• NZ Transport Agency Waka Kotahi — Importing a vehicle temporarily
• AA Insurance — Classic Vehicle Insurance
• AA Insurance — Classic Vehicle Insurance Policy
• AMI Insurance — Classic Insurance policy wording AMI1850/1
• JRI Insurance — Specialty Vehicle Insurance
• JRI Insurance — Remuneration and Fees

Author / Editorial Team

This article was produced by Insurspy’s internal editorial and research team. In our editorial review, we compare public policy information, policy wording and New Zealand consumer and regulatory sources to explain practical insurance decisions. We prioritise accuracy and usefulness, but policy wording, schedules, endorsements, eligibility and pricing can change. Check the current documents and obtain personalised advice where needed.