Those who have realized the dream of vintage car ownership know the pride they feel whenever they glance at their prized possession. The car holds special meaning if they have done restoration work to capture the original look. A lot of emotion can be attached to vintage automobiles. It is devastating if the car is damaged or destroyed by collision, fire or theft. How much worse the loss is if there is inadequate insurance coverage to protect the investment. It is essential that the right car insurance plan be chosen for vintage automobiles.
What is the best way to adequately cover the collector’s item that has so much time and money invested in it? Standard coverage intended for everyday cars does not offer the special protection required by vintage vehicles. There are insurance companies that offer special policies for these cars. The insurance is cheaper than standard coverage for liability but more expensive for collision and comprehensive.
Standard automobile coverage covers the car’s actual value. This value can be checked in a book. There is no book value for these older type cars and they need a different method of valuation. Vintage car insurance policies cover the agreed value. This is the value of the car as a collector’s item and is agreed upon between the insurance company and the insured. To be effective it should be guaranteed that this agreed value would be paid if there were a loss.
A car insurance plan covering vintage automobiles generally has a provision that the value insured will increase by a small percentage every quarter. This allows for the car’s appreciation as an antique. If the car is in the process of being restored there is similar coverage available. It allows for an increase in the car’s value as work is being done on it.
This kind of special coverage comes with some restrictions. Usually the mileage is restricted. A vintage car is not to be used every day since this increases the risk of it being damaged. This is also why the liability portion of the insurance is inexpensive. The insured may be required to show proof that each qualified driver in the household has access to another vehicle for everyday use. The car is to be sheltered in a locked garage. The insured must be an experienced driver with a clean driving record.
Restoring a car is an expensive project. Vintage car parts are difficult to come by and costly. Car collectors can feel secure in the knowledge that their most valuable possessions are protected with the right coverage. Car insurance plans for vintage automobiles offer the kind of special coverage that standard policies do not.