How-To for Insuring Classic Cars
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 cars 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 passion for many individuals, preserving some of our automotive past in the process.
The monetary value of antique autos increases with each passing year. This is totally different than with newer cars, which decrease in value with every year. It is quite difficult to precisely determine the market value of a vintage car for insurance coverage.
To make things even more complex, there aren’t too many classic car insurers available either. These automotive “works of art” are highly sought-after by collectors who are sometimes prepared to pay a great deal more than their actual value.
Computing the Average Car Insurance 101
In the instance of an average vehicle that isn’t old enough to be an antique (usually 20 years), the assessment of the car is determined by using the initial cost then depreciating each year from that dollar amount. Obviously, this presumes no major incidents, etc.
For vintage automobiles, though, a bit stickier. The price cannot be determined using ordinary methods. Particularly since the monetary value of a vintage car increases over time, not decreases.
Computing Antique Car Insurance 102
There are 3 main ways for determining the value, insurance-wise, for an antique car.
The First Method: The monetary value is jointly agreed upon between the insurer and the owner. This tends to yield a higher coverage sum than other two methods.
Method Number 2: The car’s price is determined based on the existing amounts for comparable vehicles as listed in well-known vintage automobile magazines and current price indexes. In some situations, an independent assessor might be contacted to help ascertain the worth of the car.
Method 3: A lesser-used method is to calculate the worth of the auto as the sum of the initial vehicle cost plus the many upgrades and amount spent on restoration and such over the many years. In other words, the worth of the vehicle is the amount calculated after deducting the depreciation with age from the initial cost of the vehicle, then adding back in the restoration and upgrades.
Insuring Your Vintage Vehicle
To sum it all up, antique auto insurance providers have their own set of rules they use to calculate the insurable amount of the classic vehicle. As an example, these insurers many times insist that the vehicle being insured must not be used as a means of regular transportation. They may also require that the vehicle be kept in a garage.
Additional 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 has to have a clean driving record, to boot.
Whether you call them antique autos, classic cars or vintage vehicles, they are a slice of automotive history…although a slice that has to be insured!
Is Your Vehicle Too Young to Be Antique? Don’t Worry, Here’s FREE Insurance Information!
You might not own a classic, but everyday cars need auto insurance, too. Here’s some totally free information on finding affordable auto insurance, no matter where you live.
I fail to see what border security has to do with this? I did notice it said the drunk driver was a Mexican National though. Didn't see any references to him being an illegal, or did I miss something?