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Professional Appraisals ?

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Ed_K

Ed_K

Jedi Knight
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Now that my car is close to being done, I need to know how much to insure it for. I found a local company that said they would appraise it for a $ 125.00 fee. Does that sound right ? What should I look / look out for when paying for an appraisal ? This is all a new experience for me. Any advice or comments would be welcome.
 

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Hi ED, Just a thought. Insure the car for the amount you would sell it for.---Keoke
 
Keoke,
Very sage advice.

Ed,
I hope you are aware of the difference between "AGREED VALUE", a very real & specific definition in insurance language & "actual cash value", "declared value", or other such terms. There is a big difference in what policies will actually pay in event of a loss. If not, check it out. I personally would only go for "agreed value", don't let insurance agents confuse the issue.

Basically, agreed value policies will pay exactly the agreed amount stated in the policy in event of a loss. The other policies hedge the payment on present market value, depreciated value, or any other hedges they can think of to reduce the payment.

Your car looks great, good color too. /ubbthreads/images/graemlins/grin.gif
D
 
I'm with Dave and Keoke. The "value" is more a matter of art then science, and most collector car insurance companies do an "agreed value" rather than cash value. One leaves it up to you, and they accept it, and the other leaves it up to them and you have nothing to say about it. Decide your value, and if they agree with you, you're done. When you feel the value has increased, call them up and increase the agreed value. If it's a total loss or stolen, you get the agreed value, no fuss no muss. It's one of the real benefits of a collector car policy. And it costs so little that it's crazy to undercut what your car is worth to you.
 
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Hi ED, Just a thought. Insure the car for the amount you would sell it for.---Keoke

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Keoke, That is what I need to find out, hopefully from a professional non biased opinion. All that I know is that I might be able to sell it for something between 30k and 150K, ( if I believed that B.J. was real and I don't ).

Dave, Yes, I am only going to settle for an agreed to value. I checked online and the prices seem very reasonable. I just need to buy insurance based on some concept of the market value of the car.
.... I like the idea of having salvage rights written into an " agreed to value " policy.

Here is another view. Notice my BCF " inspection sticker ".
 

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"Unbiased Professional ?". What if he don't like Healeys--- /ubbthreads/images/graemlins/grin.gif---Keoke- /ubbthreads/images/graemlins/devilgrin.gif
 
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If I were spending $125 on it, I'd want him to say something I'd want to hear.... /ubbthreads/images/graemlins/yesnod.gif /ubbthreads/images/graemlins/crazy.gif

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/ubbthreads/images/graemlins/savewave.gif JW:

Out here on the US West Coast they don.t get out of bed or even answer the Fone for less than $350.00. My friend is a top notch one.--Keoke- /ubbthreads/images/graemlins/yesnod.gif
 
Based on my experience these appraisals are a waste of time and money. The one that I had done was on a Series One E-Type. The guy came out with a check sheet, looked for power steering, sunroof even airbags and had no appreciative value for the vehicle.

I agree with what has been stated above.

Patrick
 
Ed - Here's what I did:

I used JC Taylor for years. My policy was based upon their estimation of the value of my cars. They used some reference books, but frankly I was skeptical of their estimations. They seemed way low to me. Never the less I used their numbers.

Last year, after a number of Jag and Healey friends suggested Hagerty, I gave them a call. They happily consented to an agreed value policy. The amounts were determined by me based upon what I honestly thought it would take to replace my cars, in exactly their condition, should I lose one or both. I did a lot of research on the values. I looked at recent big name auctions, eBay (a complete waste of time), retail asking and actual selling prices, estimations based upon what I actually have in my cars and the final determinant was a gut feeling that Healeys and Jags have been and will continue to trend up dramatically over the near term.

My '66 BJ8 is to all but a Healey expert a one footer. To a knowledgable Healey guy it would be a #2+ car. It's not a show queen but would hold up well on the grass anywhere but a strictly concours event. My best estimate of its "replacement" value is $55k and that's what I have it insured for. Not what somebody would pay me for it but what it would cost me to replace the car. If anything my insured value is slightly low. Whendetermining the agreed value of these old cars you really have to do a gut check to detrmine the replacement values. In most cases I believe that most cars are underinsured - needlessly so. I also believe that generally professional appraisers are full of hooey. Why pay somebody else to do what you can probably do better.
Hope this helps.
Randy '66 BJ8, '68 E-Type OTS
 
Well that seems strange. I use JC Taylor too and their requirement was a professional appraisal for all value over $18,ooo.oo.---Keoke- /ubbthreads/images/graemlins/confused.gif
 
I never submitted a prof. appraisal to JC Taylor. Nor did I do that with Great American, who I was with for a few years after them (and before Hagerty). Maybe because I accepted their values the appraisal wasn't required - a number of photos were however.

Agreed value is the only way to go, for sure.
Randy
 
Hi Ed,
I pretty much agree with Randy H.
I think it's pretty much a matter of how much would it cost to get a replacement car of equal condition on the open market.

The current NADA book prices do not seem to be too far off from real world prices. Depending on what condition your car is really in, It's likely similar to what an appraiser would give. I would guess somewhere between average retail & high retail. Probably closer to high retail.

1965 AH BJ8 phase 1
Low retail = 15,575
Avg retail = 33,900
High retail = 50,150

1965 AH BJ8 phase 2
Low retail = 17,750
Avg retail = 37,325
High retail = 55,050

All considered, I would probably try to insure for agreed value somewhere around high retail. The premiums are not a lot higher for the higher valuations. Some time ago my insurer would readily accept "average retail" plus photos, without question, but wanted documentation or appraisal for higher values. Since I had complete receipts & documentation of the restoration costs, they accepted this documentation as substitute for an appraisal, & raised the coverage accordingly. They also automatically raise the valuation each year to cover appreciation.
D
 
Thank you all for your advice. I guess I should save the $125. I found similar numbers to what Dave posted when searching around the web. It looks like I should get 55K agreed value with salvage rights. I borrowed a car trailer today , ( for what I hope is the last time ), so I can pick up my car tommorrow at the top shop. A few odds and ends and then it's ready.... Now back to researching insurance on the web.
/ubbthreads/images/graemlins/driving.gif soon
 
/ubbthreads/images/graemlins/cheers.gif Wow Ed ,The car looks Great. Let me know when you are going to be at an event and I'll see if I can drop by and meet ya. Maybe Charlotte ,Greensboro or Winston Salem?
Hope to have ours on the road in 07 then we can cruise that Parkway! Bob
 
Bob,
Thanks. I was hoping to have it all sorted out before now so I could get a parkway trip in this year to see the fall leaves. ... Like everything with this process, add 50 % more to the required time and $$$$ every time you figure it. I am sure you know this by now !
/ubbthreads/images/graemlins/cheers.gif
 
Oh I am going on the Parkway to see the leaves......Ina Honda Accord /ubbthreads/images/graemlins/frown.gif As far as insurance I plan on having enough so if something happens to it I'll feel bad..but not for too long. I think 50K at least.
 
Oh wow, looks like a million bucks.
 
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