Antique Car Insurance: Finding a policy to meet your needs

Cars that are older than 30 years are considered antique cars and they are usually used in shows and for display purposes only. Most people do not take their antique car with them to work or even on pleasure trips. Because they are treated with "kid gloves," so to speak, it can be a waste of money to get regular auto insurance for these cars as they are not driven on a regular basis. If you have an antique car, you are better off purchasing antique car insurance.

Prior to getting insurance, the car must be appraised by a certified appraiser. Your insurance company should be able to recommend a certified appraiser. The appraiser will determine the value of your car based upon the sale price of similar antique cars.

If the car is less than 50 years old, the appraiser may look for a "blue book value" on the car. The blue book value is used in the automotive industry to estimate the value of used cars. Most antique cars can found in this listing. In the event the vehicle is not listed, the appraisal may be based on the condition of the car.

An appraiser will most likely use the blue book value or set a date to view the car to ensure it is in the condition stated. This is a precautionary measure used in the prevention of insurance fraud. There have been cases where the insured over estimates the value of a car and then the vehicle is "accidentally" damaged. The owner collects on the insurance based on the estimated value. This is one reason it is important to have the vehicle apprised by someone who is trusted by the insuring agency.

Applying for antique automobile insurance requires the same basic information as other car insurance. The information includes the vehicle year, make and model, vehicle identification number, and value of the car. The insurance company will also require driver's license information for all those who will be driving the car. The policy will not be issued if this information is not provided to the insurance company.

Both the blue book value of the car, if available, and the condition of the car will determine the value of the automobile. The insuring agency provides coverage based on the replacement value should anything happen to the car. Valuation is always based upon the replacement value, which is determined either by the rated blue book value or by comparison to three similar cars in the same condition and with the same value. The insurance will also provide coverage against damage or injury to other individuals and self, should the car is involved in an accident.

Finding insurance may require checking with several companies to find one that offers antique car insurance. Larger agencies have underwriters who may offer antique car insurance and are able to issue collision and liability insurance based on frequency of use and information regarding the primary driver of the vehicle being insured.

There are several types of antique automobile insurance available today. One is based on actual cash value which is based on an amount the car is worth at the time of insurance, less depreciation costs per year. This may not be a wise decision if the car is one that will gain in value in years to come as it is similar to ordinary car insurance.

The stated value policy provides a safer option. This policy will cover the appraised value of the car during the entire term of the insurance policy.

A third option is called agreed value insurance and consists of a monthly premium on the car. This option is best for those who live areas with varying climates limit the driving to certain months during the year. This eliminates the cost for liability coverage during the months that the car is in storage. The option that you choose for antique car insurance depends on the value of your car and how often you plan to drive it.