Quote:
Originally Posted by Curtis in MA
I was reviewing my insurance policy and notice a $20,000 agreed value.
I don't think the car is worth this. What would you estimate it at?
The car is a 1930 standard coupe without a rumble seat. Stock except for alternator, oil filter and turn signals. One fender and rear spares. Drives well. Have done a few 100+ mile trips.
Been in the family for 60+ years so no plans to ever sell it!
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Quote:
Originally Posted by Curtis in MA
Difference between 20 and 15 is $42/year
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Maybe so but then again let me share something that may change that intent for you.
So with a little background here, I am an approved repair facility for several collector car insurance companies, and from what I have witnessed in the past, -what you are about to do is going to potentially create quite a bit of stress for you should you have a claim. Most insurance companies now consider a claim that is 80% or greater a total loss. That means at the present stated value, a $16,001.00 estimate of repair now moves the vehicle to salvage state. Due to regulations and contracts with salvage companies, it is rare that the owner gets to "buy back" their vehicle from the insurance company because the salvage companies are under contract where they must take
all of the vehicles. Therefore these Salvage Companies want collector vehicles because their ROI is greater than a totaled 2006 Ford Taurus for example.
So suppose your new policy goes to $10k. That means that at an $8k estimated repair (80%), your vehicle is no longer economically feasible to repair in their eyes and is now considered salvage. As a shop owner, I can tell you straight-up that $8k does not go far when repairing damage.
Another thing that I have noticed is most adjusters have no clue as to collector vehicle repair as most are independent adjusters working on a flat-rate per claim and have no real collector car experience. So what they will do is write an estimate that seems believable to the customer and the insurance company, and if there are any supplimentals, then that is handled separately with additional pay for them. I have a 1958 Buick Roadmaster in here right now where the adjuster estimated the repair at a little over $3,800 at the insured's home. State Farm issued a check to the owner for the estimated amount however fortunately the owner had not deposited the check into his bank yet. In the interim, the owner contacted me and then the car was shipped to me from over 100 miles away because I was the closest repair facility that dealt with collector cars. My estimate is over $9k because the quarter panel is buckled, there is hidden damages, and there is a lot of stainless steel trim and chromed pot metal damage. If the owner had deposited the insurance check, that would have likely settled the claim as far as the insurance company is concerned and the owner could have been out over $5k.
Two things play into this; first, the Adjuster was likely doing the best he knew how to do under the circumstances he was put in however most are unfamiliar with collector cars in general, and more specifically stainless repair and bumper plating costs. In this particular case, the adjuster just substituted a plastic bumper cover instead of plating costs, and left stainless trim replacement costs blank. This brings up the second side of this in that insurance companies know that some people like to pocket the money on claims instead of actually repairing the item, -and as such they generally write the estimate lower with an understanding that if the owner can submit receipts & invoices for the replacement/repair of the damaged pieces, then they will gladly pay the difference. So in this particular claim, all I must do is submit invoices for the bumper to be replated (over $2k), all of the trim repair & straightening (likely another $2k) and other britework repairs. In addition, the paint on this vehicle is not that old but it was a poorly done BC/CC job. Since the Qtr and the Deck Lid have suspect substrates, I told the adjuster that he would need to get a release from the customer to me unless I stripped all the paint and started over. So by the time I added the frame repair time, bumper bracket straightening, and all of the other items, we were around $9k. He was not upset between the two estimate differences, and he authorized me to proceed. The owner has an agreed policy that is over double of what the estimate was, so we are moving ahead, and the customer will be receiving a much better job than had he tried to do the repairs himself. I am not advocating that folks should only use collector car shops however I am saying that things are not in your favor if you choose to make the repairs yourself without someone who understands both sides.
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