Antique Car Insurance for Your "Old Car"

If your classic or antique car is covered under a conventional car insurance policy, then you might be wasting your money. Many folks who know they have a classic or vintage vehicle do not use that vehicle the same way they would their "day-to-day car"�, and the insurance carried for it ought to take that into consideration. You are very much better off getting an insurance policy that's fashioned especially for the older car. You'll be getting your car the coverage it requires and may also save on premiums in the process.

Old Cars vs. Classic Cars

Therefore, what constitutes a vehicle antique, classic or just plain old? Each insurance firm has its own definitions; but, generally, a classic car is one that is anywhere from fifteen to thirty years old. It should also have some value on the collector's market, be in good general condition and not be used for commuting or any commercial enterprise.

A vehicle that is viewed as "antique"� is at least twenty-five - thirty years old and is only used for show purposes. Antique vehicles are generally equipped with some kind of historic license plate also. They can be driven, naturally, but only in connection with a show. An older vehicle that doesn't meet the standards for either the "classic"� or "antique"� categories is believed to be simply an "old car"� and if used the least bit, must be covered under a conventional car insurance policy.

How come the difference in car classifications so crucial? There are many specialty car insurance companies that deal solely with collectable vehicles. If your car or truck is "antique" or "classic"�, then you might qualify for insurance rates that are less than conventional car policie

s. The Antique or Classic Car Appraisal

If you want your car insured for some amount of money larger than its book value, you might need to acquire an appraisal done. Appraisals even are useful in cases of divorce or estate planning. In the course of an authoritative appraisal the car is properly classified, its shape is documented and a list of comparable vehicles (along with their values) is arrived at.

Picking out the proper appraiser is vital. The individual you choose to appraise your vehicle must be knowledgeable about similar makes and models, ought to supply references and should make his or her resume available to you. If you have a problem finding a qualified appraiser by yourself, check out the American Society of Appraisers (ASA). The ASA will at least be able to guide you towards the most useful resources.

In order for the car to be properly insured, it should be properly categorized. Data such as body style, make, color, model, year and Vehicle Identification Number (VIN) or engine number are all noticed. For some vehicles (i.e. Corvettes and Ferraris), the VIN is necessary in order to verify genuineness.

Appropriate consideration of the vehicle's condition is vital when appraising its value. The appraiser will be required to exhaustively examine the vehicle, run it whenever possible and document the condition in a careful written account. The valuator will also put down the vehicle's condition via the use of pictures.

In order to bring more validity to the appraised value of the vehicle, the appraiser should also include in his or her report a list of comparable vehicles and their costs. This data may come from sale and auction results, vehicle price guides, ads and any other published material that documents a similar vehicle's commercial value.

Insurance for the Antique or Classic Car

Getting insurance specifically designed for classic cars is vital. The proper policy will allow for exactly the correct amount of coverage for your vehicle. Moreover, agencies that specialize in vehicles like yours are more likely to interpret your particular needs and fears.

There are 3 kinds of insurance coverage for classic or antique cars, all of which are considerably cheaper than standard car 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. Just 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 advisable type of insurance 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.