How-To for Insuring Vintage Cars
It doesn’t matter if you call these beauties antique, vintage or classic, they are sufficient to get your heart racing. But while auto insurance for classic autos only covers part of the vehicle’s worth, it is better than having zip, in case of theft or damage. These classic vehicles are a delight for many people, saving some of our automotive past in the process.
The monetary value of antique autos increases (not decreases) with every passing year. This is in contrast to newer vehicles, which diminish in value every year. It is quite tricky to truly determine the market value of an antique car for insurance purposes.
To make matters even more difficult, there aren’t all that many vintage vehicle insurers available either. These classic “works of art” are increasingly sought-after by collectors who are sometimes willing to pay a lot more than their actual value.
Computing the Average Car Insurance 101
In the instance of an ordinary automobile that isn’t old enough to be considered an antique (usually 20 years), the monetary value of the automobile is calculated by using the original cost then depreciating each year from that monetary amount. Of course, this assumes no major accidents, etc.
For vintage autos, though, a bit trickier. The cost can’t be determined using ordinary ways. Even more so since the value of a vintage automobile grows as time goes on, not lessens.
Calculating Antique Auto Insurance 102
There are 3 primary ways for computing the price, insurance-wise, for an vintage automobile.
Method Number 1: The monetary value is jointly agreed upon between the insurer and the owner. This tends to yield a higher coverage sum than other two methods.
Method 2: The automobile’s worth is determined based on the present values for comparable automobiles as listed in respected vintage automobile magazines and current price indexes. In some instances, an third-party assessor might be called in to help establish the price of the car.
Method Number 3: A lesser-used method is to calculate the value of the auto as the total of the initial cost plus the many upgrades and amount spent on restoration and such over the many years. In other words, the worth of the vehicle is the amount calculated after deducting the depreciation with age from the initial cost of the vehicle, then factoring back in the restoration and upgrades.
Insuring Your Vintage Automobile
In summation, antique auto insurance providers have a set of rules they use to decide upon the insurable amount of the classic vehicle. For example, these insurance providers usually require that the automobile being insured shouldn’t be used as a means of regular transportation. They may also insist that the vehicle be kept in a garage.
Other requirements could include that the classic automobile can’t be used for racing, and that any other members of the household have proven access to other modes of transportation. And finally, the owner needs to have a spotless 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 Vehicle Too Young to Be Vintage? Don’t 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.
