Insurance Appraisals

Ensuring proper insurance coverage for classic, collectible, and custom vehicles is essential due to their unique value and potential for appreciation over time. For these types of vehicles, securing an Agreed Value insurance policy is highly recommended. This type of policy involves a mutual agreement between you and your insurer on the vehicle’s worth, considering its make, model, year, and any customizations. In the event of a total loss, an Agreed Value policy guarantees that you will be compensated for the amount specified in your policy, providing peace of mind and protection for your investment.

 

In contrast, most major insurers offer Stated Value policies. While the stated value influences your premiums, it does not ensure the same payout in the event of a claim. Typically, a Stated Value policy allows the insurer to settle for either the stated value or the vehicle’s actual cash value—whichever is lower. This can leave collectors vulnerable to receiving less than they expect in the case of a total loss.

 

For vehicle collectors, understanding the difference between these two types of policies is crucial to securing adequate protection. It’s a good idea to review your current insurance coverage to avoid any unpleasant surprises if you need to file a claim.

 

Agreed Value policies require an appraisal, which provides transparency and security, ensuring that there are no unexpected deductions. If your vehicle is stolen or totaled, you will be assured of receiving the pre-agreed compensation. This is especially important for custom and show cars, whose replacement costs may far exceed their actual cash value or market value. The replacement value should consider the cost of the donor vehicle, materials, and labor involved in recreating such a specialized vehicle.

 

Having an appraisal is critical not only for securing an Agreed Value policy but also for substantiating your vehicle’s worth during claim negotiations, ensuring you receive fair compensation for your unique automotive investment. Relying on an appraisal provided by your insurance company is often not in your best interest, as their appraiser may lack experience with classic and custom vehicles, leading to an inaccurate valuation.

 

In contrast, an independent appraiser, such as Auto Appraisal Network - Charlotte, has the expertise and knowledge to accurately value your vehicle. Using comparable vehicles, industry data, and factoring in any customizations or upgrades, we ensure your vehicle is appraised fairly and accurately. This accurate valuation is critical should your vehicle be stolen, damaged, or involved in an accident, ensuring you receive the compensation you deserve.

 

Auto Appraisal Network - Charlotte provides certified appraisals for classic, custom, luxury, late-model, and rare vehicles, as well as motorcycles and boats. Contact us today to schedule your appraisal and protect your automotive investment.