Antique Auto Insurance – Where To Buy Auto Insurance Online

February 12, 2018 · Posted in General Articles on Car Insurance 
by Matt Hellstrom

Antique or vintage automobiles are highly collectible items with a huge fan base. Although the antique auto insurance will only be able to cover the monetary value of a vintage or classic automobile, it is still wise to have some sort of recourse than having none in events these classic vehicles are damaged or stolen. These vehicles are a passion for many people and there are many collectors of classic and vintage automobiles.

Whereas the ordinary automobile faces depreciation in its value over the years, a vintage automobile’s value appreciates with each passing year. The older it is the more value it has to the collector. Some very rare automobiles of such kind are priced so high that they are many times over their original market value. The existence of this anomaly creates a lot of problems when it comes to determining a value for such automobile before they can be insured.

The insurance value for a vehicle is usually determined by the original price less the depreciation over the years that it has collected. In the case of an antique automobile, the price cannot be determined in this fashion as it is the age of the car that contributes to the rise in its value.

Antique auto insurance companies have come up with three different methods to determine the value of a vintage automobile. The preferred method is to determine a value that is agreeable to both the owner as well as the insurance company. This takes into consideration the appreciation in value as well as the original price of the car.

An antique car’s value is usually determined by a comparison based on the current values for similar automobiles as listed in popular vintage automobile magazines and price indexes that are in vogue. Sometimes the services of an independent assessor are sought to determine the value of the automobile.

One less-used method is to fix the value of the automobile as the sum total of the actual cost price plus the many up gradations and enhancements and amount spent on repairs etc over the years. The last method is to fix the value of the vehicle as the amount arrived at after deducting the depreciation with age from the original cost price of the vehicle.

Most antique auto insurance companies put up a few conditions, the satisfying of which the policy can then be issued. Antique auto insurance companies require most owners to have a driving experience of at least 10 years with an impeccable record. Some others require the vehicle to be kept under lock and key with adequate measures of protection in place. It has to be proved that other members of the household are using other vehicles for transport and that the antique car is not used for every trip. Another stipulation is that these automobiles should not be used for racing or transportation purposes.

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