No question about it, vintage autos have a huge fan base. But while auto insurance for classic cars only covers part of the car’s worth, it is better than having zip, in case of damage ot theft. These classic vehicles are a delight for many people, saving some of our automotive history in the process.
The monetary value of classic autos increases with every passing year. This is totally different than with newer autos, which decrease in value every year. It is quite difficult to truly determine the market value of a vintage car for insurance coverage.
To make things even more difficult, there aren’t all that many classic car insurers that are available either. These automotive “works of art” are sought-after by collectors who are at times prepared to pay a lot more than their tangible value.
Calculating the Average Car Insurance 101
In the situation of an ordinary auto that isn’t quite old enough to be considered an antique (usually 20 years), the worth of the car is determined by using the initial cost then depreciating each year from that cost. Naturally, this assumes no major incidents, etc.
For antique automobiles, though, it’s a tricky situation. The value cannot be calculated using regular ways. Particularly since the monetary value of a classic automobile grows as time passes, not decreases.
Computing Antique Automobile Insurance 102
There are 3 primary methods for determining the worth, insurance-wise, for an classic car.
Method 1: The monetary value is jointly agreed upon between the insurer and the owner. This tends to yield a higher insured amount than other ways.
Method 2: The automobile’s worth is determined based on the recent values for comparable automobiles as listed in respected vintage automobile publications and current price indexes. In some instances, an third-party assessor might be called in to help ascertain the value of the automobile.
Method # 3: A lesser-used way is to estimate the monetary value of the automobile as the total of the actual vehicle cost plus the numerous enhancements and amount spent on repairs and such over the many years. In other words, the worth 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 Auto
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 insurance providers frequently require that the automobile being insured shouldn’t be used as a means of regular transportation. The insurer may also insist that the vehicle be garaged.
Extra requirements may include that the classic vehicle can’t be used for racing, and that any other members of the household have proven access to other means of transportation. And finally, the owner has 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 must be insured!
Is Your Automobile Too Young to Be Antique? 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.
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