Buying auto insurance for your antique vehicle is different with purchasing car insurance for a vehicle that you drive everyday. So for those antique car owners out there, it is important that you learn a few things before buying car insurance.
Different state have different laws with antique car insurance.
Every state have different laws as to how old a vehicle has to be to be classified as antique. Normally it is 15 years. In addition to that, in order to qualify for antique car insurance you need have another vehicle for everyday use and you need to have a garage for your antique car.
Determining ACV
Car insurance policies for collectors are essential since there are different types of coverage offered. Traditional auto insurance pays the ACV of the car. ACV (Actual Cash Value) is the cost of replacing the vehicle less the cost of depreciation. So this should not work with your antique car since it does not incorporate the appreciation of a collector’s item. Traditional car insurance covers the stated value of the vehicle so the insurance provider pays for the stated worth of the vehicle.
The cost of Antique car insurance
This specialty insurance for antique car pays the agreed value of the vehicle. In this manner the owner will receive the full value of the vehicle as a collector’s item. Antique car insurance usually costs less than the normal vehicle insurance. With this information any antique car collector can save a lot of money on purchasing car insurance for their precious collector’s item.