How-To for Insuring Vintage Autos

It doesn’t matter if you call these beauties antique, vintage or classic, they are sufficient to get your heart racing. But while auto insurance for classic autos only covers part of the vehicle’s value, it is better than having nothing, in case of damage ot theft. These antique autos are a passion for many people, saving some of our automotive history in the process.

The worth of antique autos increases with each passing year. This is in contrast to newer cars, which reduce in value with every year. It is somewhat complicated to precisely determine the market value of a classic car for insurance purposes.

Making matters worse, there are not too many antique auto insurers available either. These automotive “works of art” are exceedingly sought-after by collectors who are sometimes willing to pay a good deal more than their actual value.

Calculating the Average Car Insurance 101

In the situation of an everyday automobile that isn’t old enough to be considered an antique (usually 20 years), the monetary value of the car is calculated by using the initial cost then taking a depreciation for each year from that cost. Obviously, this assumes no major accidents, etc.

For classic automobiles, though, a bit trickier. The cost cannot be calculated using ordinary ways. Even more so since the value of a vintage auto grows over time, not lessens.

Calculating Antique Car Insurance 102

There are 3 main methods for determining the price, insurance-wise, for an antique automobile.

Method 1: The worth is jointly agreed upon between the insurer and the owner. This tends to yield a higher coverage sum than other methods.

Method 2: The automobile’s value is determined based on the present amounts for comparable vehicles as listed in popular vintage automobile magazines and price indexes that are in vogue. In some instances, an independent assessor might be contacted to help establish the worth of the vehicle.

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

Insuring Your Vintage Automobile

In summation, antique auto insurance providers have a provisions they use to calculate the insurable amount of the antique vehicle. As an example, the insurers many times insist that the automobile being insured must not be used as a regular means of transportation. The insurer may also insist that the vehicle be kept in a garage.

Further requirements might include that the classic auto 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 has to be insured!

Is Your Automobile Too Young to Be Vintage? Not to Worry, Here’s FREE Insurance Information!

Is auto insurance eating up too much of your budget? Here’s some absolutely free information on finding affordable auto insurance, no matter where you live.