Automotive News

It doesn’t matter if you call these beauties classic, vintage or antique, they are sufficient to get your heart beating furiously. But while auto insurance for classic cars only covers part of the car’s value, it is better than having zip, in case of damage ot theft. These classic vehicles are a passion for many individuals, preserving some of our automotive past in the process.

The assessment of vintage autos increases with every passing year. This is totally different than with newer autos, which decrease in value every year. It is rather difficult to precisely determine the market value of an antique vehicle for insurance coverage.

To make matters even more complex, there are not too many classic car insurers available either. These antique “works of art” are increasingly sought-after by collectors who are sometimes prepared to pay a good deal more than their real value.

Everyday Vehicle Insurance

In the case of an average car that isn’t quite old enough to be considered an antique (usually 20 years), the value of the auto is calculated by using the original cost then depreciating each year from that dollar amount. Obviously, this presumes no major accidents, etc.

For classic cars, though, a bit stickier. The cost cannot be determined using ordinary methods. Especially since the monetary value of a classic auto grows as time passes, not decreases.

Determining Antique Automobile Insurance 102

There are three main ways for computing the value, insurance-wise, for an vintage car.

Method 1: The worth 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 car’s value is determined based on the existing values for similar vehicles 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 car.

Method Number 3: A lesser-used system is to estimate the value of the vehicle as the total of the initial cost plus the many upgrades and amount spent on repairs and such over the many years. In other words, the worth of the auto is the amount determined after deducting the depreciation with age from the initial cost of the auto, then adding back in the upgrades and restoration work.

Insuring Your Vintage Vehicle

In summation, antique auto insurance providers have their own provisions they use to calculate the insurable amount of the antique vehicle. As an example, the insurance providers frequently require that the vehicle being insured shouldn’t be used as a means of regular transportation. They may also insist that the vehicle be garaged.

Extra requirements might include that the antique vehicle cannot be used for racing, and proof that other household members have access to other means of transportation. And finally, the owner needs to have a spick and span driving record, to boot.

Whether you call them vintage vehicles, classic cars or antique autos, they are a slice of automotive history…although a slice that must be insured!

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