No two ways about it, vintage autos have an enormous fan base. But while auto insurance for classic autos 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 people, saving some of our automotive past in the process.
The monetary value of vintage autos increases (not decreases) with every passing year. This is in direct contrast to newer cars, which decline in value with every year. It is quite tricky to truly determine the market value of a vintage vehicle for insurance purposes.
To make things even more complex, there aren’t too many antique auto insurers that are available either. These antique “works of art” are greatly sought-after by collectors who are at times prepared to pay much more than their tangible value.
Everyday Car Insurance
In the case of an ordinary auto that isn’t aged enough to be considered an antique (usually 20 years), the monetary value of the vehicle is determined by taking the original cost then taking a depreciation for each year from that dollar amount. Obviously, this presumes no major incidents, etc.
For vintage automobiles, though, it’s a delicate situation. The price can’t be calculated using average methods. Even more so since the monetary value of a vintage automobile increases as time passes, not lessens.
Calculating Antique Automobile Insurance 102
There are three primary methods for determining the monetary value, insurance-wise, for an antique vehicle.
Method Number 1: The monetary value is mutually agreed upon between the insurer and the owner. This tends to yield a higher coverage amount than other two ways.
Method 2: The antique’s worth is calculated based on the existing values for comparable cars as listed in respected vintage automobile publications and price indexes that are in vogue. In some situations, an independent assessor might be called in to help determine the price of the vehicle.
Method 3: A lesser-used technique is to determine the worth of the auto as the sum of the initial cost plus the numerous enhancements and amount spent on repairs and such over the many years. In other words, the value of the vehicle is the amount determined after deducting the depreciation with age from the original cost of the auto, then factoring back in the restoration and upgrades.
Insuring Your Classic Auto
Summing to all up, antique auto insurance providers have their own provisions they use to determine the insurable amount of the classic vehicle. For example, these insurers 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 kept in a garage.
Extra requirements might include that the vintage automobile can’t 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 spotless 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!
Is Your Automobile Too Young to Be Vintage? Not to Worry, Here’s FREE Insurance Information!
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