Classic Auto Insurance

Classic vehicles or collector automobiles are those that have been around for quite some time and have retained their appeal. Therefore it is unthinkable to go without proper classic auto insurance. These vehicles are usually worth much more than their original price owing to their antiquity. The older they are, and the better the condition, the higher their price tag. Their value continues to increase with each passing year and the usual depreciation rates that many automobiles are subject to, do not affect them.

The value of these automobiles increase each year unlike other automobiles that are subject to depreciation in their value with each passing year. These antique automobiles are works of art and are highly prized by collectors who are sometimes willing to pay many times more than their actual utilitarian value. It is very difficult to determine the market value of an companies available either.

In the case of an ordinary automobile that has no claim to antique value, the price of the vehicle at any point of time is determined from the original cost with depreciation for each year that is deducted from it. For classic automobiles however, the price cannot be determined based on the original or current utility value, nor can there be depreciation in value over the years. In fact the value of an classic automobile increases over time.

There are several methods to determine the value of an antique automobile that are employed by insurance companies offering classic automobile  insurance policies on antique and classic automobiles. The main one is the agreed upon price method which basically is the price acceptable to both the insurance company and the car owners. This value is arrived at after a consensus is reached on the price and a particular amount that is higher than the original cost of the car is fixed as the value.

The antique vehicle’s price may be determined based on fair assessments made by independent experts who are adept at determining the price of antique automobiles. The price could also be estimated by comparison, from popular automotive magazines that list out prices of various antique and classic cars.

One method that is less frequently adopted is to determine the value based on the total cost that has been incurred by the owner for the automobile over the years which include the original cost plus the amounts spent on repairs, up gradations, changing of parts, adding enhancements etc. This value is also usually higher than the original price by a large margin. The last method is to determine the actual cash value of the automobile as determined for any other by deducting the depreciation incurred over the years from the original cost of the automobile.

Whatever formula the classic car auto insurance companies use to determine the value, they use this value in providing  the classic auto insurance quotes. The classic car owner wants to be sure to do an apples to apples coverage comparison in picking the best classic auto insurance quote.

Most classic auto insurance agency and companies put up a few conditions, the satisfying of which the policy can then be issued. Antique auto insurance companies require most owners to have a driving experience of at least 10 years with an impeccable record. Some others require the vehicle to be kept under lock and key with adequate measures of protection in place. It has to be proved that other members of the household are using other vehicles for transport and that the antique car is not used for every trip. Another stipulation is that these automobiles should not be used for racing or transportation purposes.