Antique or vintage automobiles are highly collectible items with a huge fan base. Although the antique auto insurance will only be able to cover the monetary value of a vintage or classic automobile, it is still wise to have some sort of recourse than having none in events these classic vehicles are damaged or stolen. These vehicles are a passion for many people and there are many collectors of classic and vintage automobiles.
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 ordinary cases, an insurance company only pays for the actual cash value of the automobile. With each passing year this value depreciates. Antique auto insurance providers do not determine the value of a vintage or classic vehicle based on its utility value nor do they consider depreciation with age.
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.
An antique car's value is usually determined by a comparison based on the current values for similar automobiles as listed in popular vintage automobile magazines and price indexes that are in vogue. Sometimes the services of an independent assessor are sought to determine the value of the automobile.
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.
Most antique auto insurance lay down certain rules and stipulations that have to be adhered to for the policy to be active on the automobile. Keeping the automobile secure from theft, fire or corrosion and ensuring that it is not used for racing or commercial transportation is a usual requirement that is put forward by antique auto insurance companies. The other usual stipulations are that there should be another vehicle for general use in the owner's household and the antique automobile shall not be used for regular commuting purposes.
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 ordinary cases, an insurance company only pays for the actual cash value of the automobile. With each passing year this value depreciates. Antique auto insurance providers do not determine the value of a vintage or classic vehicle based on its utility value nor do they consider depreciation with age.
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.
An antique car's value is usually determined by a comparison based on the current values for similar automobiles as listed in popular vintage automobile magazines and price indexes that are in vogue. Sometimes the services of an independent assessor are sought to determine the value of the automobile.
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.
Most antique auto insurance lay down certain rules and stipulations that have to be adhered to for the policy to be active on the automobile. Keeping the automobile secure from theft, fire or corrosion and ensuring that it is not used for racing or commercial transportation is a usual requirement that is put forward by antique auto insurance companies. The other usual stipulations are that there should be another vehicle for general use in the owner's household and the antique automobile shall not be used for regular commuting purposes.
