The problem with old cars and vintage vehicles is the fact that they are not made anymore. As a result, the value on such vehicle is often ambiguous and set by an aftermarket collector’s demand more than anything else. This reality doesn’t set in right away; an antique auto model appreciates over time, especially as various aspects of the car become rarer. No surprise, some models will always be in more demand than others, but after a certain point most antique autos in good condition have a demand among collectors and fans of that vehicle type. This is where the topic of insuring such a car comes into play.
Antique Auto Valuation
An antique auto is practically impossible to gauge in terms of valuation when just looking at specifications, a photograph, manufacturer’s data and similar. What may be the replacement value in one region can vary dramatically in another. Because valuation is often driven by collector demand for parts and complete assemblies, the pricing of a vehicle can go up and down. No insurance company wants to be saddled with a Hope Diamond of a car in terms of financial risk, but they also don’t want to low ball customers either. So a professional appraisal becomes key in determining how much to truly value a vintage vehicle for. A professional appraiser is many times an expert in a particular vintage car type, so he or she has a keen idea what a true replacement cost will be for the exact condition car being examined. That makes a huge difference versus details from a piece of paper.
As a result, anyone seeking coverage for a vintage car should be prepared to obtain a certified appraisal first. It will save lot of arguments about value as most insurance companies will definitely take the word of a licensed appraiser over the market any day when it comes to a collectible.
Learn more about antique auto coverage here or call 800-763-4775.