Insurance 101 for Vintage Vehicles, Antique Autos, Classic Cars

No doubt about it, classic autos have a giant fan base. But while auto insurance for classic vehicles only covers part of the car's worth, it is better than having zilch, in case of damage ot theft. These classic cars are a delight for many individuals, preserving some of our automotive past in the process.

The value of antique autos increases with every passing year. This is totally different than with newer autos, which diminish in value with every year. It is relatively complicated to accurately determine the market value of a vintage auto for insurance purposes.

To make matters even more complex, there are not very many vintage vehicle insurers available either. These classic "works of art" are exceedingly sought-after by collectors who are at times willing to pay a great deal more than their tangible value.

Everyday Car Insurance

In the situation of an everyday automobile that isn't quite old enough to be an antique (usually 20 years), the worth of the auto is calculated by using the initial cost then taking a depreciation for each year from that price. Obviously, this presumes no major accidents, etc.

For vintage cars, though, it's a delicate situation. The cost simply cannot be calculated using normal methods. Particularly since the value of a vintage auto grows as time goes on, not lessens.

Determining Vintage Automobile Insurance 102

There are three main methods for determining the value, insurance-wise, for an classic vehicle.

Method Number 1: The worth is mutually agreed upon between the owner and the insurer. This can yield a higher insured amount than other ways.

Method Number 2: The antique's worth is calculated based on the existing values for similar autos as listed in respected vintage automobile publications and current price indexes. In some cases, an third-party assessor might be contacted to help ascertain the value of the automobile.

Method # 3: A lesser-used way is to calculate the monetary value of the vehicle as the sum of the actual vehicle cost plus the various enhancements and amount spent on restoration and such over the many years. In other words, the monetary value of the automobile is the amount determined after deducting the depreciation with age from the original price of the auto, then factoring back in the upgrades and restoration work.

Insuring Your Antique Vehicle

To sum it all up, antique auto insurance providers have a provisions they use to decide upon the insurable amount of the classic vehicle. As an example, the insurance providers usually insist that the vehicle being insured should not be used as a regular means of transportation. They may also require that the vehicle be garaged.

Additional requirements could include that the vintage car can't be used for racing, and that any other members of the household have proven access to other modes of transportation. Oh, and the owner needs 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 must be insured!

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