Antique Car Insurance

 
Many drivers of older or so called "vintage" cars may be confused as to whether or not they need to purchase antique car insurance. The real answer to this question depends on how old the car is (typically those older than 25 years are considered antique, though there may be exceptions), how the car is used, the condition of the vehicle, and whether its value is determined by its value as a vehicle alone or its value as a collector's item.

A vehicle that is older than twenty five years old but is still used primarily as a vehicle for transportation is probably not a good choice for antique car insurance. Examples of this type of vehicle include farm vehicles that have been kept in good working order by the owner but have not been actively modified or restored to original form. For these vehicles, standard automobile insurance is sufficient.

One important factor to consider when buying antique car insurance is whether the value of the vehicle far exceeds its depreciated sale price. This is the case for automobiles that have been restored and/or considered collector's items. Many times, these vehicles have an intrinsic value that can be next to nothing when depreciation is factored in, yet are still worth a great deal to classic car enthusiasts. Antique car insurance will pay the agreed value (a value agreed upon by the insurance company and the owner which reflects the value of the vehicle as a collector's item) in the event of damage to the vehicle.

Clearly, antique car insurance requires inspection by the insurance agency to determine the agreed value. Also, most antique car insurance companies place restrictions on how many miles the car can be driven, how it is stored, and other aspects of the automobile's usage. These restrictions normally preclude the vehicle from being used as day to day transportation.