Antique Car Insurance: Finding a policy to meet your needs
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by: JoeyHudson
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Antique cars are vehicles that are more than 30 years old and usually are used in car shows and for display purposes only. Antique cars are not used to travel to work or vacations. These cars are treated with "kid gloves" and regular auto insurance for these cars may be a waste of money because they are not driven on a regular basis. Antique car insurance is a better choice when planning to purchase 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.
In some cases, if the car is less than 50 years old, the appraiser can look for a "blue book value" of the car. The blue book value is used in the automotive industry to estimate the value of used cars. Your antique car will most likely be listed in the Blue Book. If so, the appraiser can go off of the condition of the car for his or her appraisal.
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.
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 will have to check around to find an insurance company that offers antique car insurance. Most of the larger agencies have an underwriter who will offer this insurance. They will issue collision and liability insurance based upon how often the car is used and the information on the person who will be driving the vehicle.
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 is the better option as this 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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Want to know more about automobile insurance? Go to www.aboutautomobileinsurance.com and learn more about automobile insurance for teens and women and other related subjects.
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