How-To for Insuring Classic Vehicles
No question about it, classic autos have an enormous fan base. But while auto insurance for vintage vehicles only covers part of the value, it is better than having zilch, in case of damage ot theft. These vintage vehicles are a passion for many people, saving some of our automotive history in the process.
The value of antique autos increases (not decreases) with each passing year. This is in direct contrast to newer cars, which lessen in value with every year. It is somewhat tricky to truly determine the market value of a vintage car for insurance coverage.
Making matters worse, there are not all that many vintage vehicle insurance providers that are available either. These automotive “works of art” are exceedingly sought-after by collectors who are sometimes prepared to pay a great deal more than their true value.
Calculating the Average Car Insurance 101
In the situation of an average automobile that isn’t old enough to be considered an antique (usually 20 years), the assessment of the auto is calculated by using the original cost then depreciating each year from that amount. Of course, this presumes no major incidents, etc.
For antique autos, though, a bit stickier. The value cannot be determined using common methods. Especially since the monetary value of a antique vehicle increases over time, not decreases.
Determining Vintage Vehicle Insurance 102
There are 3 main methods for calculating the worth, insurance-wise, for an classic auto.
Method Number 1: The value is mutually agreed upon between the owner and the insurance company. This can yield a higher coverage sum than other two ways.
Method Number 2: The car’s worth is determined based on the existing amounts for comparable automobiles as listed in respected vintage automobile magazines and price indexes that are in vogue. In some cases, an independent assessor might be contacted to help decide upon the value of the car.
Method Number 3: A lesser-used method is to compute the value of the automobile as the total of the actual vehicle cost plus the various enhancements and amount spent on restoration and such over the many years. In other words, the monetary value of the car is the amount calculated after deducting the depreciation with age from the initial price of the auto, then adding back in the restoration and upgrades.
Insuring Your Classic Vehicle
Summing to all up, antique auto insurance providers have a provisions they use to ascertain the insurable amount of the vintage vehicle. For example, the insurance providers usually require that the automobile being insured shouldn’t be used as a regular means of transportation. They may also insist that the vehicle be garaged.
Added requirements might include that the classic vehicle cannot be used for racing, and proof that other household members have access to other means of transportation. And finally, the owner has to have a spick and span driving record, to boot.
Whether you call them antique autos, classic cars or vintage vehicles, they are a slice of automotive history…albeit a slice that has to be insured!
Is Your Car Too Young to Be Antique? Not to Worry, Here’s FREE Insurance Information!
You might not own a classic, but everyday cars need auto insurance, too. Here’s some totally free information on finding affordable auto insurance, no matter where you live.
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