How-To for Insuring Antique Cars
It doesn’t matter if you call these beauties classic, vintage or antique, they are sufficient to get your heart beating furiously. But while auto insurance for classic autos only covers part of the value, it is better than having zilch, in case of theft or damage. These classic cars are a passion for many people, preserving some of our automotive history in the process.
The price of classic autos increases (not decreases) with every passing year. This is in direct contrast to newer autos, which diminish in value with every year. It is quite complicated to precisely determine the market value of a vintage vehicle for insurance coverage.
To make matters even more complex, there aren’t very many classic car insurance providers available either. These automotive “works of art” are exceedingly sought-after by collectors who are sometimes willing to pay a great deal more than their actual value.
Everyday Car Insurance
In the case of an average car that isn’t aged enough to be considered an antique (usually 20 years), the assessment of the automobile is calculated by using the original cost then depreciating each year from that amount. Obviously, this assumes no major incidents, etc.
For vintage cars, though, it’s a tricky situation. The value cannot be determined using ordinary methods. Especially since the monetary value of a vintage car increases over time, not lessens.
Computing Vintage Vehicle Insurance 102
There are three primary methods for calculating the monetary value, insurance-wise, for an antique auto.
Method Number 1: The monetary value is jointly agreed upon between the insurer and the owner. This can yield a higher coverage sum than other ways.
Method 2: The vehicle’s value is calculated based on the recent values for similar vehicles as listed in popular vintage automobile magazines and price indexes that are in vogue. In some cases, an third-party assessor might be called in to help decide upon the worth of the car.
Method Number 3: A lesser-used system is to calculate the worth of the auto as the sum of the actual vehicle cost plus the scores of upgrades and amount spent on repairs and such over the many years. In other words, the value of the car is the amount determined after deducting the depreciation with age from the initial price of the vehicle, then adding back in the restoration and upgrades.
Insuring Your Antique Vehicle
In summation, antique auto insurance providers have their own set of rules they use to calculate the insurable amount of the vintage vehicle. For example, these insurers usually insist that the vehicle being insured should not be used as a regular means of transportation. They may also require that the vehicle be kept in a garage.
Added requirements may include that the classic auto can’t be used for racing, and proof that other household members have access to other means of transportation. Oh, and the owner has to have a clean driving record, to boot.
Whether you call them vintage vehicles, classic cars or antique autos, they are a slice of automotive history…although a slice that must be insured!
Is Your Car Too Young to Be Antique? Not to Worry, Here’s FREE Insurance Information!
Category: Insurance
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