No question about it, classic autos have a huge fan base. But while auto insurance for classic vehicles only covers part of the vehicle’s worth, it is better than having zilch, in case of theft or damage. These vintage vehicles are a delight for many individuals, preserving some of our automotive past in the process.
The price of classic autos increases (not decreases) with every passing year. This is in contrast to newer vehicles, which diminish in value every year. It is rather complicated to accurately determine the market value of an antique vehicle for insurance purposes.
Making matters worse, there aren’t very many vintage vehicle insurers that are available either. These vintage “works of art” are highly sought-after by collectors who are sometimes willing to pay a good deal more than their tangible value.
Calculating Ordinary Car Insurance 101
In the instance of an ordinary vehicle that isn’t quite old enough to be an antique (usually 20 years), the monetary value of the vehicle is calculated by using the initial cost then taking a depreciation for each year from that price. Naturally, this assumes no major incidents, etc.
For antique cars, though, it’s a tricky situation. The price can’t be determined using common ways. Especially since the value of a antique vehicle grows as time goes on, not lessens.
Computing Classic Vehicle Insurance 102
There are 3 primary ways for computing the worth, insurance-wise, for an antique automobile.
The First Method: The assessment is mutually agreed upon between the owner and the insurer. This can yield a higher coverage amount than other two methods.
Method 2: The automobile’s worth is calculated based on the recent amounts for similar autos as listed in well-known vintage automobile publications and current price indexes. In some cases, an third-party assessor might be called in to help decide upon the price of the automobile.
Method # 3: A lesser-used method is to determine the value of the vehicle as the total of the initial vehicle cost plus the various enhancements and amount spent on repairs and such over the many years. In other words, the value of the auto is the amount calculated after deducting the depreciation with age from the initial cost of the auto, then factoring back in the upgrades and restoration work.
Insuring Your Antique Vehicle
In summation, antique auto insurance providers have their own provisions they use to calculate the insurable amount of the vintage vehicle. For example, these insurers typically require that the vehicle being insured should not be used as a means of regular transportation. They may also require that the vehicle be garaged.
Added requirements could include that the classic 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 clean 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!
Is Your Car Too Young to Be Vintage? Not to Worry, Here’s FREE Insurance Information!
Your heart might thump hard at the thought of owning a classic, but if you drive an ordinary car, it needs insurance, too. Here’s some free information on finding affordable auto insurance, wherever you may live.
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