Shopping for Antique Car Insurance
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Cars that are older than 30 years are considered antique cars and they are usually used in shows and for display purposes only. Most people do not take their antique car with them to work or even on pleasure trips. Because they are treated with “kid gloves,” so to speak, it can be a waste of money to get regular auto insurance for these cars as they are not driven on a regular basis. If you have an antique car, you are better off purchasing antique car insurance.
Prior to obtaining coverage, the car must be appraised by a certified appraiser. Most automobile insurance companies should be able to recommend a certified appraiser that they have used and trust. The appraiser will then determine the value of your car based upon the sale price of similar antique cars.
The automobile “Blue Book” listing may be used to determine its value if the car is less than 50 years old. The blue book value is used by automobile dealerships to estimate the value of used cars. Most antique cars can found in this listing. In the event the vehicle is not listed, the appraisal may be based on physical inspection of the condition of the car.
Although the appraiser is most likely going to go off of the blue book value, he or she will have to see the car to make sure that it is in the condition stated. This eliminates any potential for insurance fraud as there have been cases in which the insured over estimates the value of his or her car, has something “accidentally” happen to the car, and then collects on the insurance. This is why it is so important to have the vehicle appraised by someone who is trusted by the insurance company.
Applying for antique automobile insurance is not much different than applying for regular car insurance. You will the need the basic information such as the year, make and model number as well as the value. You will also have to provide the insurance company with the driving license of anyone who will be driving the car. If there is a vehicle identification number on the vehicle, the insurance company will also need to have that to issue the insurance policy.
Both the blue book value of the car, if available, and the condition of the car will determine the value of the automobile. The insuring agency provides coverage based on the replacement value should anything happen to the car. Valuation is always based upon the replacement value, which is determined either by the rated blue book value or by comparison to three similar cars in the same condition and with the same value. The insurance will also provide coverage against damage or injury to other individuals and self, should the car is involved in an accident.
You have to do a bit of research to find out which companies offer antique car insurance. Big insurance companies usually have underwriters who may offer antique car insurance and are able to issue collision and liability insurance based on frequency of use and information regarding the primary driver or drivers of the vehicle being insured.
There are several types of antique automobile insurance available today. One is based on actual cash value which is based on an amount the car is worth at the time of insurance, less depreciation costs per year. This may not be a wise decision if the car is one that will gain in value in years to come as it is similar to ordinary car insurance.
The stated value policy provides a safer option. This policy will cover the appraised value of the car during the entire term of the insurance policy.
Agreed value insurance consists of a monthly policy premium. This option is best for drivers living in areas where climate changes limit the driving to certain months or require the car to be in storage. The cost for liability coverage is eliminated during the months of storage. The policy picked should be based on the value of the car and how often it will be driven during the year.
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