"Appraised value"?
Thread Starter
Le Mans Master
Joined: Mar 2001
Posts: 6,640
Likes: 287
From: Ann Arbor Michigan
"Appraised value"?
I had my 71' appraised for insurance purposes and it was appraised WAY over what I could ever sell it for. What is the relationship between "appraised value" and a reasonable selling price?
Race Director
Joined: Sep 2004
Posts: 11,874
Likes: 263
From: Arlington Va Current ride 04 vert, previous vettes: 69 vert, 77 resto mod
well your insurance company would like them to be the same.....go look through the cars for sale section and look for any thing like yours that has been sold and see what the price was. you question is almost unanswerable....if it were a good appraisal they would be similar
Burning Brakes
Joined: Nov 2005
Posts: 924
Likes: 15
From: DFW Metroplex Texas
My Vette is insured for an agreed value of $5K more than I feel I could sell mine for if I needed to "cash out" now.
I'm confident I could get the full insured value if I took my time in selling it. Thats how I look at it anyways.
Insurance companys will not do you any favors. If they are willing to insure a certain agreed amount, then they know that it is worth it.
I'm confident I could get the full insured value if I took my time in selling it. Thats how I look at it anyways.
Insurance companys will not do you any favors. If they are willing to insure a certain agreed amount, then they know that it is worth it.
Instructor
Joined: Jan 2007
Posts: 236
Likes: 0
From: michigan
unfortunately, a high or inflated "appraisal" won't necessarily stand up in court if the insurance company decides not to pay your claim if anything happens. You might question the appraiser as to his method of valuation. The insurance company could claim fraud on your part ,that maybe you "knew" it really wasn't worth that much and were trying to make money on your claim. BTW, how much over the realistic price do you think this appraisal was?
Instructor
Joined: Oct 2006
Posts: 131
Likes: 0
From: Brampton Ontario
Appraised value is just that!!...an agreed value for insurance purposes... Selling price is dictated by market conditions and how badly a buyer wants your car.... Appraised value often takes into consideration how much you have put into the car and therefore represents more closely the "Replacement" cost in the event of loss.... I don't know of any direct relationship to the selling price... It is often said "something is only worth what someone else is willing to pay for it"
Thread Starter
Le Mans Master
Joined: Mar 2001
Posts: 6,640
Likes: 287
From: Ann Arbor Michigan
Appraised value is just that!!...an agreed value for insurance purposes... Selling price is dictated by market conditions and how badly a buyer wants your car.... Appraised value often takes into consideration how much you have put into the car and therefore represents more closely the "Replacement" cost in the event of loss.... I don't know of any direct relationship to the selling price... It is often said "something is only worth what someone else is willing to pay for it"
Safety Car
Joined: Sep 1999
Posts: 4,930
Likes: 11
From: AnyTown NJ
St. Jude Donor '08-'09-'10-'11-'12-'13-'14-'15
The term "Appraised Value" scares me a little as it pertains to classic car insurance. I would check with your insurer and make sure it has the same definition as "Agreed Value" which means that is the fixed dollar amount you would receive should your vehicle become a total loss.
Appraisals IMHO are only worth using for insurance purposes not for establishing a selling price.
Appraisals IMHO are only worth using for insurance purposes not for establishing a selling price.
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Race Director
Joined: May 2005
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From: Millington Illinois
St. Jude Donor '08-'09
Thread Starter
Le Mans Master
Joined: Mar 2001
Posts: 6,640
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From: Ann Arbor Michigan
Race Director
Joined: May 2005
Posts: 10,674
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From: Millington Illinois
St. Jude Donor '08-'09
Race Director
Joined: Apr 2000
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From: Who says "Nothing is impossible" ? I've been doing nothing for years.
My classic car insurance ( and most inurance companies that work on the "agreed amount" principle ) works like this, you get our car appraised, they insure youi for that amount and pay out that amount if the car is totalled no questions asked.
Here's what no one mentioned. The premium you pay is directly linked to the agreed on insured value. For example 300 bucks a year if it is worth 10K and 600 if it is worth 20K. So if you think you are gaining anything by having an appraisal way over what your car is worth, think again, you only pay more in premiums and the chances are you are never going to collect anyway.
Get it insured for what it is worth, mine is actually underinsured by a few thousand at the moment.
Here's what no one mentioned. The premium you pay is directly linked to the agreed on insured value. For example 300 bucks a year if it is worth 10K and 600 if it is worth 20K. So if you think you are gaining anything by having an appraisal way over what your car is worth, think again, you only pay more in premiums and the chances are you are never going to collect anyway.
Get it insured for what it is worth, mine is actually underinsured by a few thousand at the moment.
Safety Car
Joined: Oct 2000
Posts: 3,547
Likes: 12
From: Carbondale Pa.
So for an older policy should the car be re-appraised, not my Vette but my old Ford, bought it 12 years ago for 9 G's, had it insured with J.C. Taylor for 10 G's right afterwards, thats how it stood untill I let the insurance and regisatration lapse last year, havent driven it since 2001. Kept it licensed and insured while it was parked, But this spring it'll hit the road. BTW the insurance I had cost $81.00 , yeah, mileage limitations etc. Peace,,,Moosie 
Race Director
Joined: May 2005
Posts: 10,674
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From: Millington Illinois
St. Jude Donor '08-'09
My collector car insurance was $360. Most of the premium amount was for the liability portion. The comp and collision was a smaller portion. Agreed value $40,000
Administrator
Joined: Jul 2000
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From: About 1100 miles from where I call home.
Many appraisers keep "business" coming in by writing ridiculous appraisals and feeding into their owners' delusions. I wonder how each insurance company deals with the insane appraisals people come up with. They are not worth the paper they are printed on.
Safety Car
Joined: Sep 1999
Posts: 4,930
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From: AnyTown NJ
St. Jude Donor '08-'09-'10-'11-'12-'13-'14-'15
Instructor
Joined: May 2005
Posts: 229
Likes: 0
From: Oreland PA
Keep in mind although they gave you an appraised value that may not be what they give you if the car is totaled. Read the policy!!!!!!!!!!! With appraised value they give you a high appraisal and when the car is totaled they give you what it cost to replace it. If they find one of like kind and quality cheaper, thats what you get. So you are actually paying for additional insurance you will never collect. It is a waste of money.
FYI this goes the same for jewelry riders. Your jeweler thinks he is helping you by giving you an appraisal for more than you can buy it for. Remember if you can buy it cheaper so can the insurance company and that is all they will pay. So inflated appraisals only cost you more in the long run with higher premiums.
FYI this goes the same for jewelry riders. Your jeweler thinks he is helping you by giving you an appraisal for more than you can buy it for. Remember if you can buy it cheaper so can the insurance company and that is all they will pay. So inflated appraisals only cost you more in the long run with higher premiums.
Drifting
Joined: Sep 2006
Posts: 1,986
Likes: 21
From: Columbus MN
Our oldest son is an actuary (just passed his 4th test!) in the insurance business. Trust me, insurance companies have the odds precisely figured out. Premiums vs. claim payments are definitely stacked in their favor. They have the odds calculated for their profit in all non-catastrophic circumstances. Most insurance companies have insurance for catastrophies. That's the part of the insurance our son is in.
If Hagerty or Grundy or ??? did not have a non-daily driver clause, they would have to charge higher premiums because the chance of an accident is higher for communiting, errands, etc. than for driving your pristine hobby car to this month's car show or rally.
If Hagerty or Grundy or ??? did not have a non-daily driver clause, they would have to charge higher premiums because the chance of an accident is higher for communiting, errands, etc. than for driving your pristine hobby car to this month's car show or rally.
Melting Slicks
Joined: Nov 2000
Posts: 2,507
Likes: 114
From: St. Louis Mo
Keep in mind although they gave you an appraised value that may not be what they give you if the car is totaled. Read the policy!!!!!!!!!!! With appraised value they give you a high appraisal and when the car is totaled they give you what it cost to replace it. If they find one of like kind and quality cheaper, thats what you get. So you are actually paying for additional insurance you will never collect. It is a waste of money.
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Race Director
Joined: Feb 2005
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My collector car insurance company requires an "appraisal" for values $30,000 and higher....any amount under,I negotiated with them...
I have both vettes covered with "agreed" values of $30,000 and $16,000....
Also,my 69 502 is covered under their "modified" policy because of the non-stock engine HP and premium is $470/year...
Rich
I have both vettes covered with "agreed" values of $30,000 and $16,000....
Also,my 69 502 is covered under their "modified" policy because of the non-stock engine HP and premium is $470/year...
Rich