Getting a classic car insurance online quote is easier than you think. Most classic car owners do not consider it as you would a normal car, but as a special treasure. Therefore it does not make sense to insure it as a regular car, and if you do, you could be wasting your money. So instead, you should get yourself specialized car insurance coverage.
Old, Antique or Classic?
Different insurance companies have their own definitions of what constitutes a classic car, but usually a car becomes a classic at about 15 to 30 years old. It should also be in good condition and ‘collectable’, and not useful as a commercial or everyday vehicle.
Antique cars are older, usually over 25 to 30 years old, and are just for showing. These cars usually have a special type of license plate which entitles the owner to drive it only for car shows.
Some cars don’t fit into either ‘classic’ or ‘antique’ categories, and are just known as ‘old’ cars, and these are covered by the standard type of car insurance policy.
It is important to know how to classify these cars, because there are insurance companies which specialise in the different types, and if you have one of these cars you could find yourself a policy with lower premiums than the standard ones.
Appraisal of a Classic or Antique Car
Having your car appraised is necessary if you want to insure your car for higher than its on paper value. The appraisal includes an assessment of the car’s condition compared to other similar vehicles, and places the car in the appropriate category for car insurance.
It is extremely important that you find a good appraiser, one who is familiar with cars like yours. You should ask to see their resume, and for references. The American Society of Appraisers (ASA) should be able to help you find someone qualified.
For a car to be insured properly, it is important for it to be correctly categorized. This includes collecting information such as the year, make and model, and the Vehicle Identification Number (VIN). The VIN helps make sure that the vehicle is genuine.
The most important thing in the appraisal is the assessment of the car’s condition, which should involve a very thorough examination including running the engine (if possible), and photographs.
The appraiser will also include in the report the value of comparable vehicles, which supports the validity of the appraisal.
Insuring your Classic or Antique Car
There are three types of insurance coverage available for classic or antique vehicles, all costing less than standard car insurance policies. These types are:
1. Actual cash value (ACV). This method insures the car for its assessed value at the start of the coverage, and this value drops as the car gets older. If a claim is made the insurance adjustor has to assess the ACV of the car at that time.
2. Stated value (SV). Here, when a claim is made, the insurance pays for the lesser of the ACV, cost of repairs, and the stated value of the car.
3. Agreed value (AV). Recommended for most classic or antique cars. It provides car insurance coverage for an amount which is calculated and agreed upon when you buy the car.
