There’s something about classic cars that feels almost irrational—irrational in the best possible way. You don’t own one because it’s practical, or because the fuel consumption makes sense, or even because it’s reliable. You own one because every time you slide behind the wheel, the smell of old leather, the rattle of the carburetor, and the way people turn their heads as you drive past remind you why you fell in love with cars in the first place. In South Africa, where car culture runs deep—from township mechanics to Sunday show-and-shine gatherings—classic cars carry not just monetary value but emotional weight.
Now, insuring that sort of love affair is tricky. A standard policy often treats your 1971 Alfa Romeo Spider or 1965 Mercedes 220S like any other depreciating metal box on wheels. And that’s where King Price’s agreed value insurance enters the scene, promising something that seems tailor-made for enthusiasts: peace of mind that your car will be valued for what it really is, not just for what a used car pricing guide thinks it’s worth.
Why “Agreed Value” Matters for Classic Cars
Here’s the thing about most cars: their value goes down over time. Drive a new hatchback off the dealership floor, and you’ve already lost a chunk of its resale price. Insurers calculate payouts based on this “market value,” which is usually just an average number pulled from trade guides and resale data. For a Toyota Corolla or VW Polo, that makes sense—it’s predictable.
But classic cars live outside of that system. Their worth depends on condition, rarity, provenance, and even who’s doing the buying. You can’t measure the value of a mint-condition 1972 BMW 2002 against a rusted-out barn find of the same model; the spread is massive. So if you had to claim from a regular insurer, there’s a risk they’d shrug and hand you a cheque that covers little more than scrap value.
Agreed value flips the script. You and the insurer shake hands (well, sign paperwork) on a specific amount your car is worth—before anything goes wrong. If disaster strikes—an accident, theft, fire—you get paid that agreed amount. No haggling. No “let’s check the latest book value.” It’s a way of saying: your pride and joy is more than just metal—it’s heritage.
A Personal Glimpse: Watching a Friend’s Insurance Nightmare
I still remember a mate of mine, Thabo, who had a 1980s Toyota Celica GT. He’d spent weekends hunting for original trim, repainting panels, and importing tiny parts from Japan that cost more than my entire toolkit. One rainy night, another driver skidded and clipped him, wrecking the rear end.
The insurance company’s assessor came, took one look, and declared it a write-off. The payout? Less than half of what Thabo had actually put into restoring the car. They didn’t care that he had invoices showing thousands spent, or that the car was a rare model. To them, it was just an “old Toyota.” Watching him fight that battle was brutal, and it left me convinced that if you own a classic, you need more than a cookie-cutter insurance plan.
King Price’s Approach
King Price markets itself as a disruptor in South African insurance, known mostly for its decreasing premium model (your monthly payment drops as your car loses value). But with classics, depreciation doesn’t quite apply. That’s why their agreed value option feels like an interesting departure.
Here’s how it works:
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You and King Price decide upfront on the car’s value, usually with proof like valuations, restoration receipts, or specialist reports.
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That figure becomes the “agreed value.”
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In the event of total loss, that’s what you’re paid—no messy arguments later.
Sounds almost too good to be true, right? And yet, when you consider the unpredictable market for classic cars, it makes sense.
Nuances That Enthusiasts Should Note
Still, it’s worth pausing before celebrating. Insurance companies, no matter how friendly their ads sound, don’t do charity. The agreed value is not plucked from your wildest dreams—it needs justification. If you want to say your old Ford Capri is worth R500,000, you’d better have credible paperwork to back it up.
Also, agreed value usually means higher premiums. After all, King Price is taking on more risk by guaranteeing a set payout, rather than hedging with a depreciating number. For some owners, that’s a fair trade-off; for others, it may sting a little.
Then there’s the fine print. Certain policies may limit how you use your classic. Daily commuting? Maybe not. Some insurers prefer classics to be for “occasional use,” like weekend drives or shows. The idea is that less exposure equals less risk. For purists who already treat their classics as pampered garage queens, that’s no issue. But if you’re the kind who actually drives your 1969 Mustang to work twice a week, it might be frustrating.
Comparing Alternatives
King Price isn’t the only game in town. Other insurers, including Santam and Hollard, have niche products for collectibles and high-value vehicles. Some even bundle agreed value with perks like roadside assistance from flatbed tow trucks (because, let’s be honest, classics and breakdowns often go hand in hand).
So why would someone lean toward King Price? Possibly because of their reputation for shaking up the industry, and the sense that they “get” car lovers. But critics might argue that their core brand is still built around mass-market motorists, and that specialist brokers with years of experience in collectible insurance could offer deeper expertise.
The Emotional Safety Net
One underrated aspect of agreed value is psychological. Owning a classic is an emotional rollercoaster—you worry about rust, you panic over spare parts, and every time you park it in a public lot you check it twice. Knowing that, if the worst happens, you won’t be left short-changed provides an emotional safety net.
I once spoke to a couple at a Cape Town car meet who had insured their 1964 VW Beetle through an agreed value plan. They told me it wasn’t just about money. “We wanted to know that if something happened, we wouldn’t be arguing about cents and rands while grieving the car,” the husband said. “It’s like a prenup with your insurer—you agree before the drama starts.” That stuck with me.
A Wider View: The Classic Car Scene in South Africa
South Africa has a surprisingly vibrant classic car community. From the iconic MG gatherings in Johannesburg to the Cape Town Motor Show, it’s clear these cars are more than investments—they’re living history. And the financial side of keeping that history alive is no small matter.
Spare parts often need to be imported. Restorations can run into six figures. Theft is a real risk—classics can vanish into shipping containers faster than you’d believe. Against that backdrop, having a tailored insurance plan isn’t just smart, it’s almost essential.
Is It Worth It?
So, would I recommend King Price’s agreed value insurance? For many classic owners, yes—it’s likely to be far more fitting than standard cover. But I’d also say: don’t rush. Shop around. Get a proper independent valuation of your car. Compare what different insurers are offering, not just in payouts but in conditions.
And remember, insurance is ultimately about risk. If your classic spends most of its life tucked under a dust cover, maybe the cost-benefit leans one way. If you actually hit the open road on weekends and want real-world protection, it leans another.
A Personal Reflection
I don’t own a classic car—yet. But I grew up around them. My dad had an old Opel Rekord, cream-colored with a stubborn choke that never quite worked in winter. It wasn’t worth much by market standards, but to him, it was priceless. He never had agreed value cover, and when it was eventually written off after a fender bender, the payout barely covered a month’s groceries.
That story, and Thabo’s, make me think that if I ever get the chance to own a classic—whether it’s the Beetle I’ve always wanted or something less expected—I’d go the agreed value route without hesitation. Because at the end of the day, these cars aren’t just machines; they’re memory keepers.
Final Thoughts
King Price’s agreed value insurance fills a gap that many enthusiasts in South Africa have long noticed. It acknowledges that classics don’t fit into the standard depreciation model. But it also comes with conditions, costs, and the need for paperwork. It isn’t a silver bullet—but it might be one of the best compromises between passion and protection.
If you’ve ever sat on the side of the road next to your overheating classic, waiting for a tow, you’ll know the mix of frustration and affection that comes with these cars. They’re heartbreakers and joy-bringers rolled into one. And while insurance won’t stop them from breaking down, at least it can stop your heart from breaking if the worst should happen.