How-To for Insuring Antique Vehicles
No doubt about it, antique autos have a huge fan base. But while auto insurance for vintage vehicles only covers part of the car’s worth, it is better than having nothing, in case of damage ot theft. These antique autos are a delight for many individuals, preserving some of our automotive past in the process.
The assessment of antique autos increases with every passing year. This is totally different than with newer cars, which decrease in value with every year. It is fairly tricky to precisely determine the market value of a classic vehicle for insurance coverage.
To make things even more difficult, there aren’t all that many antique auto insurers that are available either. These vintage “works of art” are exceedingly sought-after by collectors who are sometimes prepared to pay a lot more than their true value.
Computing Ordinary Car Insurance 101
In the situation of an ordinary automobile that isn’t old enough to be considered an antique (usually 20 years), the monetary value of the auto is determined by using the initial cost then taking a depreciation for each year from that amount. Of course, this assumes no major accidents, etc.
For antique vehicles, though, it’s a tricky situation. The price simply cannot be calculated using regular methods. Even more so since the monetary value of a antique automobile increases over time, not lessens.
Determining Vintage Car Insurance 102
There are 3 main methods for determining the monetary value, insurance-wise, for an antique auto.
Method Number 1: The monetary value is mutually agreed upon between the owner and the insurance company. This tends to yield a higher insured amount than other two methods.
Method 2: The car’s price is determined based on the recent values for similar cars as listed in respected vintage automobile publications and current price indexes. In some situations, an independent assessor might be called in to help decide upon the price of the vehicle.
Method # 3: A lesser-used technique is to determine the monetary value of the vehicle as the sum of the actual vehicle cost plus the scores of upgrades and amount spent on repairs and such over the years. In other words, the value of the auto is the amount determined after deducting the depreciation with age from the initial price of the vehicle, then adding back in the upgrades and restoration work.
Insuring Your Vintage Car
To sum it all up, antique auto insurance providers have a provisions they use to ascertain the insurable amount of the vintage vehicle. As an example, these insurers many times insist that the automobile being insured shouldn’t be used as a means of regular transportation. The insurer may also require that the vehicle be kept in a garage.
Extra requirements may include that the vintage vehicle cannot be used for racing, and that any other members of the household have proven access to other modes of transportation. And finally, the owner has to have a spick and span 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 must be insured!
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