Conventional auto insurance may not be the best choice for insuring an antique automobile due to the usage and value of such relics. An antique vehicle is more than 30 years old, driven for auto shows and displays, and not used for travel, vacations, or when driving to work. They are treated with “kid gloves” to ensure a consistent increasing value. Regular insurance may be a waste of money. 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.
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.
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.
In addition to using the blue book value of the car, if possible, the value of the car is determined by the condition of the automobile. The insurance company will be insuring the car on the basis of the replacement value if something happens to the car, such as a theft. They will also be insuring it against damage to other individuals or to yourself if the car is involved in an accident. Valuation is always based upon the replacement value of the vehicle. This is determined either by the rated blue book value or by three other similar cars in the same condition and their value.
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.
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.
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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