Insurance 101 for Classic Cars, Antique Autos and Vintage Vehicles
No question about it, vintage autos have a giant fan base. But while auto insurance for antique vehicles only covers part of the car's worth, it is better than having nothing, in case of theft or damage. These vintage vehicles are a delight for many individuals, saving some of our automotive past in the process.
The worth of classic autos increases (not decreases) with each passing year. This is in direct contrast to newer cars, which diminish in value every year. It is fairly tricky to precisely determine the market value of a vintage auto for insurance coverage.
Making matters worse, there aren't very many antique auto insurance providers that are available either. These classic "works of art" are sought-after by collectors who are at times willing to pay a great deal more than their true value.
Calculating Ordinary Car Insurance 101
In the case of an everyday car that isn't old enough to be considered an antique (usually 20 years), the monetary value of the car is determined by taking the original cost then taking a depreciation for each year from that monetary amount. Of course, this presumes no major incidents, etc.
For classic automobiles, though, it's a tricky situation. The price simply cannot be determined using common methods. Especially since the monetary value of a antique auto grows over time, not decreases.
Computing Classic Automobile Insurance 102
There are three main methods for computing the price, insurance-wise, for an vintage automobile.
The First Method: The monetary value is jointly agreed upon between the insurer and the owner. This tends to yield a higher coverage amount than other methods.
Method 2: The antique's worth is calculated based on the existing amounts for similar autos as listed in respected vintage automobile magazines and price indexes that are in vogue. In some situations, an independent assessor might be contacted to help determine the price of the automobile.
Method 3: A lesser-used means is to determine the worth of the vehicle as the total of the initial cost plus the many enhancements and amount spent on repairs and such over the years. In other words, the worth of the auto 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 Classic Automobile
Summing to all up, antique auto insurance providers have a 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 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 may include that the antique auto 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 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...albeit a slice that has to be insured!
Is Your Vehicle Too Young to Be Vintage? Don't Worry, Here's FREE Insurance Information! - 23211
The worth of classic autos increases (not decreases) with each passing year. This is in direct contrast to newer cars, which diminish in value every year. It is fairly tricky to precisely determine the market value of a vintage auto for insurance coverage.
Making matters worse, there aren't very many antique auto insurance providers that are available either. These classic "works of art" are sought-after by collectors who are at times willing to pay a great deal more than their true value.
Calculating Ordinary Car Insurance 101
In the case of an everyday car that isn't old enough to be considered an antique (usually 20 years), the monetary value of the car is determined by taking the original cost then taking a depreciation for each year from that monetary amount. Of course, this presumes no major incidents, etc.
For classic automobiles, though, it's a tricky situation. The price simply cannot be determined using common methods. Especially since the monetary value of a antique auto grows over time, not decreases.
Computing Classic Automobile Insurance 102
There are three main methods for computing the price, insurance-wise, for an vintage automobile.
The First Method: The monetary value is jointly agreed upon between the insurer and the owner. This tends to yield a higher coverage amount than other methods.
Method 2: The antique's worth is calculated based on the existing amounts for similar autos as listed in respected vintage automobile magazines and price indexes that are in vogue. In some situations, an independent assessor might be contacted to help determine the price of the automobile.
Method 3: A lesser-used means is to determine the worth of the vehicle as the total of the initial cost plus the many enhancements and amount spent on repairs and such over the years. In other words, the worth of the auto 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 Classic Automobile
Summing to all up, antique auto insurance providers have a 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 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 may include that the antique auto 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 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...albeit a slice that has to be insured!
Is Your Vehicle Too Young to Be Vintage? Don't Worry, Here's FREE Insurance Information! - 23211
About the Author:
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.
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