>Duane Walzer wrote - Regarding Auto Insurance:
>In the process of insuring my Healey, I went to my insurance agency
>(Liberty Mutual) and talked to one of the managers. (I don't want to
>get in an accident, and THEN have them tell me the car is 25+ years
>old and thus worth $50.) The manager was a former XK-140 owner so
>I felt comfortable talking with him.
>I asked: What is book value on a 1955 Austin Healey?
>Insurance Ans: The car is too old and not listed in the book.
>
>Q: Then, if there is a loss, how is value assessed?
>A: At time of loss our agents will pay "market value" as derived from
> HEMMINGS, our assessors, (..the moon being full, and God only knows??)
> You should get an appraisal + pictures.
>
There are also several "price guides" which list vehicles by make,
model, age, condition, etc. they are: Old Cars Price Guide,
published bi-monthly by Krause Publications, Iola, Wisconsin.
There's also a small collector price book of "Cars of Particular Interest"
which is a quarterly publication available by subscription ($18) from:
CPI, PO Box AM, College Park, MD 20740.
The latest copies of these publications list a 1955 Austin Healey as
Old Cars Price Guide (Dec. 89)
Condition 1 (Perfect) $22,500 to Condition (5) $3350
CPI (4th Quarter 1989
High Retail Sales $18,500 to low at $7250 (Average at $12,900)
>Q: If I get it appraised + pictures, and the car is IMMEDIATELY "totaled";
> Would I get the Appraised value?????
>A: The appraisal would be taken into account, and subject to depreciation.
>
I would be seriously suspect of this process if the ONLY adjustment
against the appraisal would be depreciation. Quite clearly, that is
contrary to the true movement of the market value of your Healey and
almost all other collector cars. The only thing I can think of that
would be justifiable of a lower value would be if the owner lets the
vehicle deteriorate. If the condition of the car at the time of an
accident is as good or (more likely) better than it was when the
appraisal was done, the value can only be greater.
>NOTE: In getting a car appraised, there are appraisors and "certified"
> appraisors. Get appraisals done by one who is "certified" by your
> insurance agent.
>
>Last year, being uncomfortable with above answers, I again asked like
>questions. Then I learned that Liberty Mutual's "Stated Amount" is defined
>and coverage limited to the LEAST of 3 conditions - one of which is ACV!
>Thus "Stated Amount" is, by their definition, no better than ACV policy.
>
>I have since switched back to regular ACV policy. To date I have no idea
>what I am buying via insurance premiums. There does not seem to be any way
>the insurance company will state any value of my car. Apparently, only at
>actual time of a loss will they determine value.
>
That is true, even for the specialty insurers. I can purchase and pay
for a stated value policy from JC Taylor for $100,000 on my '61 TR-3,
but if it was lost, that $100,000 amount represents the maximum the
company is willing to pay if the value is at or exceeds $100,000.
If, at the time of the loss, I can only justify the value as being
$9000, then that is all the insurer will pay. If you think about it,
the process would be open to serious abuse if it didn't work that way.
Someone could buy a perfect MGTD for $20,000, isure it for $100,000
stated value and have a sudden engine fire destroying the car and
walk away with $80,000 profit. In the case of your A-H, I think
you can come up with reasonable supporting documentation to
sustain a valuation and, once done, maintain records and update that
valuation as time progresses.
Hope this helps you and the rest of the B-C readers.
Bill Sohl
bellcore!taichi!whs70 or whs70@taichi.cc.bellcore.com
201-829-2879 days
201-691-8116 home
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