Antique Cars - The Reasons They Need to be Insured

If you need insurance for your regular vehicle, you need it all the more for your antique car. Though 'antique' literally means old, any old car is not an antique car. A car is only declared antique when it has been manufactured at least 25 years ago. The Classic Car Club of America specifies the cars manufactured between 1925 and 1948 as classic or antique cars. The cars can be imported from a foreign country or built in America itself. Again, the Insurance Information Institute (III) places their age requisites for an antique car to be 30 years or more. The insurance providers usually set their own rules to determine whether an automobile is antique or not. The general standards indicate cars produced 25 years ago as 'antique', and those manufactured within 15 to 25 years as 'classic'.

Why insurance is a must for antique cars?

If you own an antique car, you must have treasured it for long. You might have spent a lot of money for its maintenance, or used up a major portion of your savings to buy one. An antique car even acts as a status symbol for some. You'll thus ensure its protection with an antique car insurance policy, for the following reasons:

• You are emotionally attached to your antique car.
• Unlike conventional automobiles, the market value of antique cars doesn't depreciate with time. Instead, the value of an antique car boosts as years roll by.
• The repair costs and the value of an antique car are supposedly higher than the conventional automobiles.
• The chances for theft are higher for your antique car, due to its increased market value.

If you have antique car insurance, the insurance providers will pay for any mishap that might affect your beloved vehicle in the future. You won’t need to lose your sleep while standing guard over your prized possession. Since the costs for repair or replacement will be higher for your car than the regular automobiles, antique car insurance will be the safest way out of the future expenses. You don't have to lose more of your savings, if you buy an auto insurance policy for your antique car.

Factors considered by the insurers

The auto insurance providers note down certain details about your car, before they allow you antique car insurance. The rates for your policy, as well as the amount you can get when you file a claim, are determined after considering the below mentioned factors:

1. The age of the vehicle.
2. The model and make of the vehicle.
3. The value of the vehicle.
4. The amount of usage for the vehicle.
5. The purpose for which your antique car is used.
6. The security measures for your vehicle, for e.g. the garage where it is to be stored or the installed security devices etc.

The insurance provider and the vehicle owner mutually settles upon an 'agreed value' when the policy is purchased. The vehicle owner is paid the entire amount, without any depreciation, during a major loss or theft.

Restrictions imposed by the insurers

The insurance providers usually impose certain restrictions for the usage of the vehicle, as mentioned below:

1. They limit the usage of the vehicle. They fix your rates on your antique cars mileage per year, i.e. how much the vehicle is used.
2. They impose restrictions on the person who drives the vehicle. Usually persons with good driving records are allowed to buy an antique car insurance policy.
3. They, sometimes, seek proof that you have another vehicle for your daily usage.
4. They even determine how your car is to be stored.

The only advantage that you can get out of an antique or a classic car insurance is that, the rates are usually low for the policies. The lesser you use the vehicle, the lower your rates will be.