Antique Automobile Insurance
April 24, 2008 – 7:03 pmAntique cars are vehicles that are more than 30 years old and usually are used in car shows and for display purposes only. Antique cars are not used to travel to work or vacations. These cars are treated with “kid gloves” and regular auto insurance for these cars may be a waste of money because they are not driven on a regular basis. Antique car insurance is a better choice when planning to purchase insurance.
Prior to getting insurance, the car must be appraised by a certified appraiser. Your insurance company should be able to recommend a certified appraiser. The appraiser will 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 requires the same basic information as regular car insurance. The information needed includes the year, make and model, vehicle identification number, and value of the car. The insurance company will require driver’s license information for all intended operators. This information must be provided to the insurance company before the policy can be issued.
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.
Finding insurance may require checking with several companies to find one that offers antique car insurance. Larger agencies 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 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.
Stated value is the better option as this will cover the appraised value of the car during the entire term of the insurance policy.
A third option is called agreed value insurance and consists of a monthly premium on the car. This option is best for those who live areas with varying climates limit the driving to certain months during the year. This eliminates the cost for liability coverage during the months that the car is in storage. The option that you choose for antique car insurance depends on the value of your car and how often you plan to drive it.
Tags: Insurance
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