We want to start this article by asking you to take a look at the photo of the car shown here, a '56 Nomad. What do you think it's worth? What do you think an insurance company would pay for it?
When it comes to our cars, value is highly subjective. One enthusiast may value a car much more than another-and an insurance company may value it far less. Someone who's poured years of hard work into a car may think it's worth more than someone who simply writes the checks. Then again, someone who writes checks knows exactly how much he's paid for the car.
It's a tricky subject, to be sure. One of the best methods to find the true value of a vehicle is to have it professionally appraised. A professional takes the emotions out of the process (come on, admit it-you get a little emotional thinking about all the money, time, and effort that went into your ride).
Choosing an appraiser can be a tricky task. Someone who works solely with high-dollar antique autos like Duesenbergs and Bugattis probably has little knowledge about the value of a custom fuel-injected classic Camaro. It's important to find someone who knows the industry and the car you are seeking an appraisal on.
It's also a good idea to check out how an appraiser conducts their evaluations. Do they use a simple check off sheet? If so, they may not be putting fair value on custom items or unique accessories. A good appraiser should also take plenty of photos. If your vehicle were ever stolen or destroyed, a photo is truly worth a thousand dollars (and maybe more).
Make sure that the appraiser is accepted and recognized by your insurance company, or you will be wasting your money.
Jeff Hyman begins his appraisals...
Jeff Hyman begins his appraisals at the front of a vehicle and works his way back.
Jeff Hyman, of Classic Auto Appraiser in Huntington Beach, California, has been in the appraisal business for more than a decade, and told us, "By far the most common reason that vehicles get appraised is for insurance purposes. However, they are also done for a multitude of financial and legal reasons, including bank loans, tax donations, divorce, diminished value, estate sales, or just because an out-of-touch owner wants to know how much to sell his or her car for."
For insurance purposes, a professional, independent appraisal of your vehicle is about the only way to be sure that your insurance carrier knows what your car will cost to replace in today's market. If your two-year-old Chevy pickup is stolen, any rookie adjuster can look it up in one of the many value guides and tell you exactly what it was worth. However, if you wreck your show-quality Pro Street '57 Bel-Air that had a highly detailed blown big-block, a four-speed automatic tranny, four-wheel disc brakes, air conditioning, and a custom leather interior, how would the insurance adjuster determine the value of your car? Wouldn't it be much better if you and your insurance company were aware of, and agreed beforehand, on that value?
Unless you present your insurance carrier with a detailed professional independent appraisal written by a recognized appraisal company and let them know that the appraised value is to be the agreed value of the vehicle, you may be at their mercy at the time of a claim.