In a message dated 97-08-09 17:12:07 EDT, Trmgafun@aol.com writes:
> Doesn't the appraisal play a major part of what the car is worth? I would
> imagine that an appraisal, pictures, and an agreed value of the car should
> play a major part in what the car is worth if it is stolen or wrecked.
What
> if the car was given to him by a relative? Then it would be worth
nothing?!?
>
I am not an Insurance agent, nor an Attorney, nor am I an expert, but I would
like to pass on what I learned a while back when I was investigating
insurance for my LBCs, and working with my Lawyer to recover damages from the
other party's insurance company.
Agrred value only puts a limit on how much the insurance company has to pay
to replace your loss. All the insurance company is required to do (at least
in TN), by law, is 1) return your car to the condition it was in before you
suffered the loss, either by repair or replacement, or, 2) reimburse you for
the difference between what the car was worth before the loss, and what it is
worth after the loss.
As an example, suppose you have a show wining MG, realistically valued at
$25,000, and it is stolen. If the insurance company can find another MG, in
equivalent condition, for $2,500, they can replace your car with it, and they
have met their legal obligation. The trick is, they are the ones to determine
"equivalent condition." If you do not agree with them, your only recourse is
a lawsuit.
In the example given, you might have a good chance to win, but if you are
like most of us, with a car valued at, say $4,000, it might be difficult to
fight a $2,500 replacement.
As I said, I am NOT an expert, so please check it out for yourself. The laws
may be different in other states, and it is not altogether unlikely that I am
full of crap on this.
Dan Masters,
Alcoa, TN
'71 TR6---------3000mile/year driver, fully restored
'71 TR6---------undergoing full restoration and Ford 5.0 V8 insertion - see:
http://www.sky.net/~boballen/mg/Masters/
'74 MGBGT---3000mile/year driver, original condition
'68 MGBGT---organ donor for the '74
|