8 Tips for Buying Antique Auto Insurance

If you use these 8 tips for buying antique auto insurance, you may save money, time, and aggravation that sometimes accompany this type of purchase. Most people who own antique vehicles know that they need protection, however, an alarming number do not have any clue where to start looking.

Take a cue from the experts and enter your ZIP code into the FREE toolbox for great car insurance rates!

Upon your first purchase of an antique automobile, the first step is the verification process. You really need to make sure the car is indeed an antique. There are many older cars available on the market, but it is essential that you confirm the original year of manufacture.

This means you will need specific documents, which should come with the purchase. Unfortunately, quite a few unsavory characters present fraudulent papers more times than you think.

To be certain of the history of your vehicle, you should go to the National Motor Vehicle Title Information System for a complete report.

This is an excellent resource, which can guide you with your new purchase and provide you with important specifications regarding your car. Even though you have a much older vehicle, owners still register their cars with the state to obtain insurance. This means they have the records on file. You can find out the true condition as well as the number of previous owners, which you will need for the appraisal, so it is a wise investment.

Learn the Difference between an Antique and Classic Car

The Antique Car Club of America states a car becomes antique after 50 years, while the Classic Car Club of America defines this type of vehicle as produced anywhere between the years 1925 and 1948. It is difficult to place a specific year of production in these terms as they are generalizations at best.

US History.gov shows how in 1902 Henry Ford manufactured the Ford 999 racer and in 1914, the Model T. This was the beginning of motorized, passenger vehicles. Therefore, by not recognizing cars before 1925, the CCA leaves a 23-year gap when defining antique cars.

Many times, a classic car is simply one that the manufacturer made 15 years prior to the current year. This means, you could categorize a vehicle from the 1990s as a classic vehicle.

For obvious reasons, this could never become an antique so quickly, still the lines sometimes cross when age becomes a factor further down the line. Since you need absolute confirmation, it is better to check with your state Department of Motor Vehicles, they have the final say.

For example, the state of New Jersey classifies an antique as a vehicle manufactured before the year 1949, but does not limit the prior year to 1925. Clearly, this state does recognize the past efforts of our pioneering ancestors.

Educate Yourself with Common Terms

When it comes to certain terms and antique cars, it is imperative that you educate yourself. Most long-time collectors understand that the difference between one term and another can mean thousands of dollars lost or saved.

A top antique car appraisal site, called Antique Antiques.com lists six major descriptions that antique auto insurers use when classifying these vehicles. They included excellent, fine, very good, good, restorable, and parts car.

While you may think your vehicle is in excellent condition, the car insurance company may not.

An antique car in excellent condition is one that someone took time and money to ensure the appearance remains professional looking with high standards. Every area of the car has quality and perfection. They have most of the original parts, appear and operate like brand new. This vehicle has hundreds, not thousands of miles because it was virtually never driven.

An antique vehicle rated fine has undergone a restoration of superior quality, usually professional grade. It displays very little wear with exceptional overall preservation. Both the interior and exterior components receive regular maintenance. This vehicle operates just fine.

The status of very good is what most new collectors acquire before they begin putting in the work of correcting minor problems. It too is operable and has mostly original parts. The interior and exterior appearance is presentable.

A classification of good is also acceptable; however, it may or may not be operable. With enough money and time, the owner is able to transform the vehicle. If the automobile received a restoration, but maintenance fell by the wayside, this is the result. It may operate, but the engine probably requires a full tune-up.

A restorable antique automobile requires an investment to bring it back to life. The exterior and interior of the car needs to work as well as the engine. This type of vehicle is not operable.

Finally, an antique vehicle labeled parts car does not require auto insurance unless you want to make certain no one steals the parts. It is not operable and will not be restored, as the name suggests, it is for spare parts only.

Document Value and Current Condition

This is actually a good idea before you buy the vehicle, however, most people do not have this opportunity. Nevertheless, within the first week or so, you should try to find a reputable appraiser who specializes in antique cars.

Try to locate a certified, licensed expert who is also an authority of the auto insurance industry.

Their information is crucial to the auto insurance process. Their knowledge in this field will help you understand the full value of your vehicle, using age and condition as a guideline. The value of most antique cars varies due to the unique qualities.

In order to establish the true value of your car, the appraiser you choose will know how to look for certain issues. In addition to the written document that displays what the car is worth, they should also provide you with a certificate of authenticity and at least three references.

Find Out if You Can Drive Your Vehicle on Public Roads

In some states, antique car owners cannot drive on public roads. They are only allowable for educational or exhibition purposes. This has a huge impact on the type of car insurance you purchase. If your state permits driving on streets and highways, you will need to make this known to your insurance carrier.

Driving is much different from transporting the vehicle using a tow-truck with a flatbed from one display to another. Getting behind the wheel and maneuvering on the roads means higher risks. Not only do you face obstacles, like poor pavement, fallen tree limbs, and animals but you also encounter other drivers.

The auto insurance company will also need to take into account your mileage. They will want to place restrictions on how much you drive in a year. This is also because of risk factors.

The more you drive, the higher the likelihood of an accident or minor collision.

This type of event depreciates the value of the vehicle and causes you to file a claim. Your auto insurance carrier does not look forward to either of these situations.

Do Not Use an Auto Insurance Company Offering Actual Cash Value Policies

When it comes to the type of coverage you need, there are three ways to choose. This kind of protection is completely different from normal car insurance so you should go with an expert; a few exist.

A professional antique car insurance provider understands how to review your paperwork showing validity of the assessment from the appraiser. They will not waste your time with actual cash value policies, which you should never use.

Actual cash value policies will not work to your benefit. They only offer you insurance for the depreciation amount, which relates to the price you paid to purchase the car.

For instance, you bought a Buick in 1956. To date, it remains in excellent condition. The actual cash value policy will only consider what the book value shows, which is probably much less.

This plan undervalues your antique vehicle because it does not take into account the significance or sentimental value of a 56-year old car in pristine condition.

To maintain the proper state, you must have kept the vehicle protected from the elements and covered in a storage facility or garage. This type of care and maintenance deserves recognition.

Purchase Auto Insurance According to the Stated or Agreed Value

Look for an agent or provider offering either an agreed value or stated value auto insurance policy. The most common and popular is the agreed value premium. This is what most car enthusiasts choose because it benefits the owner tremendously.

Using this protection, you have complete coverage for the value, without depreciation. Most times, a deductible is not required if something happens to the vehicle.

Stated value policies for antique cars allows you to provide the car insurance company with the amount you see fit and is well over the standard depreciation value.

This kind of policy does have drawbacks, however. They usually have loopholes that may not provide you with full-coverage and they often have deductible procedures.

Join a Club

One of the reasons why antique car owners make these purchases is to meet with others just like them. This is where clubs come in handy. The members have useful information, especially for novices and you gain a world of knowledge in a short time.

Virtually every state has one in the area and if you have a difficult time locating one, just go to Facebook and take a look around. There are dozens of people just waiting to connect with you.

These clubs and social outlets also make it possible for you to show your vehicle off, particularly if your state will not allow you to ride around your neighborhood. You can find all of the latest events in your town where you can bring your antique vehicle and put it on display. After all, what is the purpose of buying an exquisite piece of art if no one can see it?

Always Stay Alert to Changes

Just like traditional auto insurance companies, your antique car insurance provider may not meet all of your needs after awhile. Unfortunately, simply because you have a collectible vehicle does not mean this will not happen. This means you may need to start looking around again.

Remember to stay alert to the changes of your policy and question anything that you do not understand. If you start to see issues that impact your wallet, it may be time for you to consider other options. Although there are a limited number of qualified antique car insurance companies, you still have options and should not feel boxed in to one provider.

You too can find the best type of car insurance rates when you add your ZIP code into the FREE tool on this page!