Antique Auto Insurance – Online Auto Insurance Quotes
Because of the place an antique automobile has created in history for itself in terms of the premium prices they typically command, antique auto insurance is important. These automobiles are collected by passionate enthusiasts who are willing to pay much more for them than their actual cost back in the day.
These vintage or classic automobiles as they are popularly known are considered works of art and have a market value much higher than their real value, just like any other piece of art. Determining the price of a vehicle while processing an antique auto insurance policy is a tricky process. Though there are many companies out there selling such policies, there are only a handful that offer comprehensive and well drawn out policies that offer policies in tune with what your vehicle is actually worth.
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 antique 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 antique automobile increases over time.
There are several methods to determine the value of an antique automobile that are employed by insurance companies offering antique auto 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 price of an antique or classic automobile can be arrived at by employing the services of an independent appraiser as well. This price that is arrived at is invariably much higher than the original price of the automobile. This value can also be arrived at through comparing the automobile in question with others in its genre as listed in trade magazines that list out price indexes for vintage automobiles.
One less-used method is to fix the value of the automobile as the sum total of the actual cost price plus the many up gradations and enhancements and amount spent on repairs etc over the years. The last method is to fix the value of the vehicle as the amount arrived at after deducting the depreciation with age from the original cost price of the vehicle.
Most antique auto insurance 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.
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