Shopping for Antique Car Insurance

Posted by Joey Hudson on April 30th, 2008 at 02:20am

Cars that are older than 30 years are considered antique cars and they are usually used in shows and for display purposes only. Most people do not take their antique car with them to work or even on pleasure trips. Because they are treated with “kid gloves,” so to speak, it can be a waste of money to get regular auto insurance for these cars as they are not driven on a regular basis. If you have an antique car, you are better off purchasing antique car insurance.

Prior to getting insurance, the car must be appraised by a certified appraiser. Your insurance company should be able to recommend a certified appraiser. The appraiser will determine the value of your car based upon the sale price of similar antique cars.

If the car is less than 50 years old, the appraiser may look for a “blue book value” on the car. The blue book value is used in the automotive industry to estimate the value of used cars. Most antique cars can found in this listing. In the event the vehicle is not listed, the appraisal may be based on the condition of the car.

An appraiser will use the blue book value or set a date to view the car to ensure it is in the condition stated by the owner. 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 damages the vehicle to collect the insurance. The owner collects on the estimated value listed in the policy. 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 other car insurance. The information includes the vehicle year, make and model, vehicle identification number, and value of the car. The insurance company will also require driver’s license information for all those who will be driving the car. The policy will not be issued if this information is not provided to the insurance company.

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.

Finding insurance may require checking with several companies to find one that offers antique car insurance. Larger agencies have underwriters who may offer antique car insurance and are able to issue collision and liability insurance based on frequency of use and information regarding the primary driver of the vehicle being insured.

There are several types of antique automobile insurance available today. One is based on actual cash value which is based on an amount the car is worth at the time of insurance, less depreciation costs per year. This may not be a wise decision if the car is one that will gain in value in years to come as it is similar to ordinary car insurance.

Stated value is the better option as this will cover the appraised value of the car during the entire term of the insurance policy.

Agreed value insurance consists of a monthly policy premium. This option is best for drivers living in areas where climate changes limit the driving to certain months or require the car to be in storage. The cost for liability coverage is eliminated during the months of storage. The policy picked should be based on the value of the car and how often it will be driven during the year.

Under Travel