Insurance 101 for Classic Cars, Antique Autos and Vintage Vehicles
It doesn’t matter if you call these beauties antique, vintage or classic, they are enough to get your heart racing. But while auto insurance for classic autos only covers part of the car’s value, it is better than having zip, in case of theft or damage. These antique autos are a passion for many individuals, saving some of our automotive history in the process.
The value of vintage autos increases with every passing year. This is in contrast to newer cars, which reduce in value every year. It is fairly tricky to truly determine the market value of a classic auto for insurance purposes.
To make things even more difficult, there are not too many antique auto insurance providers available either. These classic “works of art” are greatly sought-after by collectors who are sometimes prepared to pay a great deal more than their tangible value.
Computing the Average Car Insurance 101
In the instance of an average car that isn’t aged enough to be considered an antique (usually 20 years), the monetary value of the vehicle is calculated by taking the initial cost then taking a depreciation for each year from that amount. Of course, this presumes no major incidents, etc.
For vintage cars, though, it’s a thorny situation. The price simply cannot be calculated using common ways. Particularly since the monetary value of a classic vehicle grows over time, not lessens.
Computing Vintage Car Insurance 102
There are 3 primary methods for calculating the worth, insurance-wise, for an classic vehicle.
Method 1: The assessment is jointly agreed upon between the insurer and the owner. This can yield a higher coverage sum than other two ways.
Method Number 2: The vehicle’s worth is determined based on the existing values for similar vehicles as listed in well-known vintage automobile publications and price indexes that are in vogue. In some cases, an third-party assessor might be called in to help determine the worth of the car.
Method Number 3: A lesser-used system is to determine the value of the automobile as the sum of the actual vehicle cost plus the various upgrades and amount spent on restoration and such over the years. In other words, the worth of the auto is the amount determined after deducting the depreciation with age from the original cost of the vehicle, then adding back in the upgrades and restoration work.
Insuring Your Vintage Auto
Summing to all up, antique auto insurance providers have a provisions they use to ascertain the insurable amount of the classic vehicle. As an example, the insurance providers frequently insist that the automobile being insured should not be used as a means of regular transportation. They may also insist that the vehicle be garaged.
Additional requirements might include that the vintage car can’t be used for racing, and proof that other household members have access to other modes of transportation. And finally, the owner needs to have a spotless driving record, to boot.
Whether you call them vintage vehicles, classic cars or antique autos, they are a slice of automotive history…albeit a slice that has to be insured!
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