No doubt about it, antique (vintage) autos have a huge fan base. But while auto insurance for vintage vehicles only covers part of the value, it is better than having nothing, in case of theft or damage. These classic vehicles are a passion for many people, saving some of our automotive past.
The Corundum of the Vintage
The value of classic autos increases each year. This is in contrast to newer cars, which decrease in value every year. It is rather difficult to accurately determine the market value of an antique car for insurance purposes.
To make matters even more difficult, there aren't all that many antique auto insurance providers available either. These vintage "works of art" are sought-after by collectors who are at times willing to pay much more than their actual value.
Computing Ordinary Car Insurance 101
In the case of an ordinary automobile that isn't old enough to be an antique (usually 20 years), the value of the auto is determined by taking the original cost then depreciating each year from that dollar amount. Of course, this assumes no major accidents, etc.
For antique automobiles, though, it's a tricky situations. The price can't be determined using normal methods. Especially since the value of a vintage vehicle increases over time, not decreases.
Computing Vintage Auto Insurance 102
There are three main methods for determining the value, insurance-wise, for an antique auto.
Method 1: The value is mutually agreed upon between the owner and the insurance company. This tends to yield a higher coverage amount than other methods.
Method 2: The antique's value is determined based on the current values for similar automobiles as listed in popular vintage automobile magazines and price indexes that are in vogue. In some cases, an independent assessor might be called in to help determine the value of the automobile.
Method 3: A lesser-used method is to calculate the value of the automobile as the total of the actual cost plus the many up gradations and enhancements and amount spent on repairs etc over the years. In other words, the value of the vehicle is the amount calculated after deducting the depreciation with age from the original cost price of the vehicle, then adding back in the upgrades and restoration work.
Insuring Your Vintage Vehicle
To sum it all up, antique auto insurance providers have their own set of rules they use to determine the insurable amount of the vintage vehicle. For example, these insurance providers usually require that the automobile being insured should not be used as a means of regular transportation. They may also require that the vehicle be garaged.
Additional requirements may include that the vintage auto cannot be used for racing, and that any other members of the household have proven access to other modes of transportation. Oh, and the owner has to have a spotless driving record, to boot.
Whether you call them antique autos, classic cars or vintage vehicles, they are a slice of history … albeit a slice that has to be insured!
Is Your Car Not Quite to Antique Status? Here's FREE Information on Insurance!
