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Car Insurance Add Ons For Classic Car Fans
August 31st, 2010
A beautifully maintained vintage automobile gets many second glances from young and old alike. You do not have to be a car buff to appreciate the classic lines of an older vehicle. It might be the fact that it stands out among all the recent model cars. It might be the memories that it invokes of childhood or teenage years. Whatever the reasons, classic cars garner many admiring looks. If you are now the proud owner of a classic car, there are some things you need to know about insuring your prize possession. If you are an old hand in the world of classic cars but still insuring your beauty with standard coverage, there are a few things you should know. Classic car insurance is available for this special category of nonconventional automobile. There are car insurance add ons that will cover the car much better than standard coverage.
Standard auto insurance coverage uses actual cash value as the determiner when a claim is made. Actual cash value is based on the actual value of the car. This is also referred to as the book value. Deprecation is subtracted from this value and the claim is paid. Standard automobiles depreciate in value. Classic and antique cars usually appreciate in value. The difference can be tremendous. Car insurance add ons can cover this discrepancy so the real value is insured. Stated value is another way of assessing value. The auto owner states the value of the car and how much coverage is needed. There is usually a deductible with this type of coverage. Depreciation may also be deducted in a manner similar to standard coverage. The best classic car insurance uses agreed value. The value to be insured is agreed upon between the owner and the insurance company. An appraisal may be required to determine what the current value is. Receipts from the purchase and any restoration work that was done may be required to prove the value. The car is covered at 100 percent of the agreed upon value. There is usually no deductible and no depreciation subtracted.
There are frequently restrictions on this type of special coverage. Vehicles must be a certain minimum age to be categorized as a classic. Age restrictions also apply to the owner. The insurance company may require the owner to be at least 25 years old. A clean driving record is desirable. The car must be stored under cover in a secure location. A standard garage serves this purpose. There is often a restriction on how many miles the car may be driven per month or year. Applying for the appropriate type of coverage is essential to adequately protecting your classic car.
