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.
If the car is less than 50 years old, the appraiser may look for a “blue book value” on the car. The blue book value is used in the automotive industry 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 the condition of the car.
An appraiser will most likely use the blue book value or set a date to view the car to ensure it is in the condition stated. This is a precautionary measure used in the prevention of insurance fraud. There have been cases where the insured over estimates the value of a car and then the vehicle is “accidentally” damaged. The owner collects on the insurance based on the estimated value. This is one reason it is important to have the vehicle apprised by someone who is trusted by the insuring agency.
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 be used to determine the value of the car. The insurance coverage is based on the replacement value should anything happen to the car. Valuation is always based on this value whether determined by using the rated blue book value or through comparison to three similar models bearing the same condition and calculated value. The insurance also provides coverage against damage to the vehicle and 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.
Many types of antique automobile insurance are available. A policy based on actual cash value that is determined by vehicle value at the time of policy issuance may not be a wise choice. Cash Value policies may depreciate the vehicle value annually. If the car is one that will gain value with age, other types of insurance may be more adequate.
Stated value provides a safer option and 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.
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