Antique
Auto Insurance for Your “Old Car"
by SolveYourProblem.com
If
your classic or antique automobile is covered under a traditional
auto insurance policy, then you may be wasting your money.
Most people who know they have a classic or vintage vehicle
don’t use that vehicle as they would their “everyday car”,
and the insurance carried for it should take that into account.
You’re much better off acquiring an insurance policy that is
designed especially for the older car. You’ll be giving your
car the coverage it needs and might even save on premiums in
the process.
Old Cars vs. Classic Cars
So, what makes a vehicle antique, classic or just plain old?
Each insurance company has its own definitions; but, in general,
a classic car is one that is anywhere from 15 to 30 years old.
It must also have some value on the collector’s market, be
in good overall condition and not be used for commuting or
any commercial endeavor.
A vehicle that is deemed to be “antique” is more than 25-30
years old and is only used for show purposes. Antique vehicles
are usually outfitted with some sort of historic license plate
as well. They can be driven, of course, but only in association
with a show. An older vehicle that does not meet the criteria
for either the “classic” or “antique” classifications is considered
to be simply an “old car” and if used at all, must be covered
under a traditional auto insurance policy.
Why the difference in automobile classifications so important?
There are many specialty auto insurance companies that deal
exclusively with collectable vehicles. If your car or truck
is “antique” or “classic”, then you may qualify for insurance
rates that are lower than traditional auto policies.
The Antique or Classic Car Appraisal If you want your car insured for any amount greater than its
book value, you may have to get an appraisal done (appraisals
also come in handy in cases of divorce or estate planning).
In the course of an official appraisal the car is properly
categorized, its condition is documented and a list of comparable
vehicles (along with their values) is made.
Choosing the right appraiser is very important.
The person you choose to evaluate your vehicle should be
knowledgeable
about similar makes and model, should provide references and
should make his or her résumé available to you.
If you have trouble finding a qualified appraiser on your own,
check with the American Society of Appraisers (ASA). The ASA
will at least be able to point you toward the most helpful
resources.
In order for the automobile to be properly insured, it must
be properly categorized. Information such as body style, make,
color, model, year and Vehicle Identification Number (VIN)
or engine number are all noted. For some vehicles (i.e. Corvettes
and Ferraris), the VIN is needed in order to verify authenticity.
Proper
consideration of the vehicle’s condition is very important
when appraising its value. The appraiser will need to thoroughly
examine the vehicle, run it if possible and document the condition
in a detailed written report. The appraiser will also record
the vehicle’s condition through the use of photographs.
In order to add additional validity to the appraised value
of the vehicle, the appraiser will also include in his or her
report a list of comparable vehicles and their prices. This
information can come from sale and auction results, vehicle
price guides, advertisements and any other printed material
that documents a similar vehicle’s market worth.
Insurance for the Antique or Classic Car
Obtaining insurance specifically designed for classic cars
is very important. The correct policy will provide just the
right amount of coverage for your vehicle. Furthermore, agencies
that specialize in vehicles like yours are more likely to understand
your special needs and concerns.
There
are three types of insurance coverage for classic or antique
cars, all of which are substantially less expensive
than standard auto insurance: actual cash value, stated value
and agreed value. Actual cash value (ACV) sets a value for
the vehicle at the time coverage is obtained; and, as the vehicle
ages, the ACV decreases. If a claim is made, the insurance
adjuster is the one who sets the final ACV. In case of a claim,
stated value coverage (SV) pays either the stated value of
the vehicle, the cost to repair the vehicle or the ACV, whichever
is less. Agreed value coverage (AV) is the most recommended
type of coverage for an antique or classic vehicle. AV guarantees
a set amount of coverage (set at the time the policy is purchased)
should a claim arise.
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SolveYourProblem.com : 2007
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