Insurance Appraisals
Understanding Insurance Options for Classic, Collectible, and Custom Vehicles
Ensuring proper insurance coverage for Classic, Collectible, and Custom vehicles is essential due to their unique value and potential appreciation over time. For these types of vehicles, securing an "Agreed Value" insurance policy is advisable. This policy involves a mutual agreement between you and your insurer on your vehicle's worth, considering its make, model, year, and any customizations. An Agreed Value policy guarantees that, in the event of a total loss, the compensation you receive matches the value agreed upon in your policy.
In contrast, most insurance policies provided by major insurers are "Stated Value" policies. While the stated value influences the insurance premium rates, it does not strictly dictate the settlement amount in the case of a total loss. Typically, the language in a Stated Value policy allows the insurer to compensate either the stated value or the actual cash value of the vehicle, whichever is less, at their discretion.
Vehicle collectors should clearly distinguish between these two types of policies to ensure adequate protection. It's wise to review your current insurance coverage to prevent any surprises in the event of a claim.
Agreed Value policies require an appraisal, offering transparency and security without unexpected deductions. If your vehicle is stolen or totaled, you're assured pre-agreed compensation.
For custom and show cars, whose replacement costs might significantly surpass their market or actual cash value, Agreed Value insurance is particularly crucial. The replacement value should account for the donor vehicle, materials, and labor involved in recreating such specialized vehicles. Obtaining an appraisal not only facilitates securing an Agreed Value policy but also proves indispensable in substantiating your vehicle's worth during claim negotiations, ensuring you receive fair compensation for your unique automotive investment.
To prove your classic or custom vehicle's actual value requires an appraisal. The insurance company may offer to appraise it, which is almost always not in your best interest. The insurance company’s appraiser likely has little experience with most classic and custom cars and won’t accurately appraise your vehicle. On the other hand, an independent appraiser, such as Auto Appraisal Network- Charlotte has both the expertise and knowledge to fairly value your vehicle, using comparable vehicles and industry data, taking into account all of the work, modifications and upgrades made. Accurate valuations are critical should something happen to the vehicle, such as if it is stolen, in an accident, or is otherwise damaged and you need to file an insurance claim.
Auto Appraisal Network- Charlotte does certified appraisals for classic, custom, luxury, late model and rare vehicles, motorcycles and boats. Get in touch with us today to schedule your appraisal.
