Antique Auto Insurance
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.
Whereas the ordinary automobile faces depreciation in its value over the years, a vintage automobile's value appreciates with each passing year. The older it is the more value it has to the collector. Some very rare automobiles of such kind are priced so high that they are many times over their original market value. The existence of this anomaly creates a lot of problems when it comes to determining a value for such automobile before they can be insured.
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.
The main methods adopted by antique auto insurance companies to determine the price of a vintage or classic automobile are of three kinds. Usually the value is arrived at through mutual agreement between the owner and the insurance company. This is usually much higher than the original price and also is inclusive of the appreciation in value corresponding to the age of the car.
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 valuation method would be to determine the stated cash value which usually is the cumulative of purchase prices and cost of periodic upgrades. Another method which is not so popular is to opt for the actual cash value of the automobile which is based on the original price sans depreciation over the years. This could also be called the actual utility value of the car.
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. - 21396
Whereas the ordinary automobile faces depreciation in its value over the years, a vintage automobile's value appreciates with each passing year. The older it is the more value it has to the collector. Some very rare automobiles of such kind are priced so high that they are many times over their original market value. The existence of this anomaly creates a lot of problems when it comes to determining a value for such automobile before they can be insured.
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.
The main methods adopted by antique auto insurance companies to determine the price of a vintage or classic automobile are of three kinds. Usually the value is arrived at through mutual agreement between the owner and the insurance company. This is usually much higher than the original price and also is inclusive of the appreciation in value corresponding to the age of the car.
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 valuation method would be to determine the stated cash value which usually is the cumulative of purchase prices and cost of periodic upgrades. Another method which is not so popular is to opt for the actual cash value of the automobile which is based on the original price sans depreciation over the years. This could also be called the actual utility value of the car.
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. - 21396
About the Author:
Are you in the market for car insurance? The internet has totally altered the look of the car insurance industry. Get online quotes for car insurance and find out about affordable auto insurance at http://onlinequotesforcarinsurance.com today.
posted by X - Men @ 12:10 AM
0 Comments
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home