Insurance for Antique Automobiles
Taking a regular insurance policy for antique automobiles may be a waste of money as they are not used everyday like a normal car. The classic or vintage automobiles are used rarely like participating in rallies etc. Hence insurance policies that are specially designed for such use should be taken so that expense on premium can be saved.
Definition of old or classic cars
The definition of old or classic car varies from one insurance company to another. A generally accepted definition of classic car is that it should be over 15 years old, should have value as a collector’s item, in good working condition and not used for day to day commuting purpose
An antique car is one that is more than 25 to 30 years old and it is used for vintage car shows only. They can be driven only for purposes related to a show and are often fitted with historic license plates. A car that is old but does not fit into the definition of antique or classic car is simply an old car. It is covered under normal insurance policy.
The classification of an automobile as antique or classic may help in getting lower insurance rates compared to normal rates. There are auto insurance companies that specialize in providing insurance cover for such cars.
Appraisal of antique and classic cars
When a classic or antique car needs to be insured for an amount more than its book value, it should be appraised first. The appraisal may also be useful while dealing with divorce or estate planning. During the process of appraisal, the car will be categorized based on its age and its value assessed depending on its condition.
The right appraiser should be chosen and he or she must be conversant with different makes and models. Their references may be verified as also their qualification. American Society of Appraisers is the accreditation body for appraisers and provides necessary help in reaching out to the resources for appraisal.
Proper categorization is required in order to take correct insurance policy. Details such as make, model, vehicle identification / chassis / engine number, style, color, etc. are noted. The vehicle identification number is required to verify the authenticity of the automobile especially for special makes like Corvettes, Ferraris etc.
The condition of the vehicle needs to be ascertained through thorough examination and if required through a test drive for proper appraisal. Photographs of the vehicle may also be taken for documentation.
In the appraisal report, a list of comparable vehicles along with prices will also be noted. These prices may be obtained from auction results, price guides, etc.
Taking insurance for antique car
The insurance policies for antique car are of 3 types, based on actual cash value or stated value or agreed value and all of them are less expensive than regular auto insurance. In actual cash value, the value set at the time of taking insurance reduces as the vehicle ages. In policies based on stated value, the claim amount will be least of either the stated value or cost to repair or the actual value. Agreed value policies which are most common pay the value agreed at the time of taking insurance in case of claim.
