Apprasial

[Stephen W.]

Re: Apprasial

Let me share a little insight here about insurance appraisal.
I see that it's already been mentioned that some insurance companies require an appraisal before they will write the policy. This will both provide a high end "limit" to what they would payout with a total loss and it sets the rate for the premium. Unless it's a fairly newer car I doubt they would write a standard policy (acv) like the family truckster.
Most state ins departments set mandates as to how an insurance company will handle the claim. What time they have to inspect , offer settlement and how they determine the value. Most states can give this info online. Today a lot of insurance companies will use a market survey completed by an ind company like CCC or ADP. These companies gather sales info and use sales of cars "similar" to yours. Same make model ect... Now this works great for the 2001 Buick Century or Ford Taurus but beware of the "specialty" car. Actually these computer generated values will usually "kick" the Corvette out of the normal process and force a rep to look at it. Still the value report will use ALL similar year Corvettes in its report and then determine your value. So how do you get a fair value? Well you can hire a lawyer but most deal with injury law and know very little about property damage losses. So what do you do?
DO YOUR HOMEWORK! DOCUMENT EVERYTHING with facts and photos! We are all proud of our cars and love to show others it's history ... Same goes for this.
Have it appraised by a licensed appraiser that specializes in this type of car. Maintain all records and results of any judging. Remember you want to support your claim with facts. This is all the adjuster needs to support his payment to you! He will most likely not have the authorization level to just pay you so he will have to show his file to his manager and if it's a 1967 L88 you can bet that his manager needs to go to his home office for authorization to pay this high dollar claim.
Now why do most people need to fight with their ins co? Because they do not support anything and only yell that their car is worth more than they want to pay. Be proactive... Remember that adjuster? Do you think he really wants to do all the research so he can pay you the big bucks? He wants to finish the claim and move on to the next one because his boss wants production. Do you really want to make life tough for the person that signs the check? So if you have your folder full of all the valuable research and documentation you have done the work for him. You have proved what your car is worth and gave him what he needs to sell it to his boss for approval! His boss may not like the numbers but he also knows you have done your homework and can prove your case in court. So does he want to spend the money for house council to fight a loosing case because you were too well prepared? No... He will document all the supporting evidence and pay the claim. The adjuster will get a pat on the back for having such a well documented file and settling this difficult claim so efficiently.
So do your homework and be prepared for a day you hope never happens.

[Jack H.]

Re: Apprasial

There are basically two kinds of auto insurance:

(1) 'Standard' policies (may have a 'declared value' rider which is a a rip-off; more later).

(2) Policies modeled on 'inland marine' practices (so called 'collectors' insurance).

The second form of insurance dates back to the inception of Lloyds of London covering ships at sea during the 1500-1600 era. There, if a vessel went down who was to say what the 'value' was at the time of loss? It was defined by a '
gentleman's agreement' based on the pre-defined value of the vessel/crew and the cargo, as defined by manifest filed at the last known port of call. There was NO DICKERING, Lloyds paid based on a floating premium (so much per unit value of valuation).

Standard auto policies are based on ACV (actual cash value). The 'twist' is you can pay a premium to boost the policy, with a rider, to a 'declared value' policy. Here, you get an appraisal and you and the insurer pre-agree on the 'maximum' current value of the vehicle.

The Catch-22 is when you read the fine print in a declared value policy. You'll almost always find it reads they'll pay EITHER the ACV or the declared/stated valve at the time of loss, WHICHEVER IS THE LESSER!!!!! Next, you'll never hear from your insurance agent again after you jump through the hoops, get the appraisal and define/pay for the stated/declared value policy rider.... Why?

Well, based on the fine print (ACV or stated/declared value whichever is the lesser), it's in their interest NOT to have you periodically update your appraisal to demonstate the vehicle is STILL in the condition you and the insurer originally agreed upon to establish the stated/declared value policy rider! However, you'll pay the policy rider premium until Hell freezes over and should you have an occassion to make a claim, well the further in time from your original apprasial the better for the insurer!!!!

There have been a number of articles written about this 'scam' by folks 'burned' by it. The first I heard about it was maybe 20-years ago by a lawyer who'd insured his classic Mustang and several years later suffered a total loss. He was SHOCKED to find he had no supporting evidence to prove the Mustang had been maintained in the condition it was originally appraised and the verbal assertions of his insurance agent(s) meant NOTHING (another fine print dodge in most policies) and he was force to sue big time....

Then, I had my '71 covered by a standard policy with declared/stated value rider by a MAJOR insurance company (Farmer's) and I went to talk to my agents bringing the article with me. They read the article and told me that wasn't how the 'deal' worked in their company....

I encouraged them to 'double check' and finally they got through to the home office where they were able to talk to someone in underwriting. He listened to their question and bluntly told them to READ THE FINE PRINT of the policy they'd sold me!

They did. HORROR. The article was 100% correct! It read the company would pay EITHER the ACV or the declared/stated value WHICHEVER WAS LESS at the time of claim and no aural statements from the company's agents had force/effect....

Soooo, I changed to a standard policy WITHOUT a stated/declared value rider and have had my car judged every year or two to create a doomsday file to justify my position as to the car's ACV. My other car is a Mark of Excellence, Bloomington Gold, Triple Crown 'trailer queen' covered by a modified inland marine policy with all the typical 'collectors policy' useage restrictions....