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October 01, 2003
Kelly
One of the methods insurance companies use to value cars for insurance
purposes is to ask themselves the question 'how much would it cost to
replace this car with an alternative in the event of a complete loss' ie what
would a virtually identical (in terms of year, condition etc) car cost to buy?
Using that philosophy you can look at current cars for sale that are similar in
age and condition to yours, and be able to come up with a reasonable figure.
It gets a little more complex when you start to consider cars at the very top
end of the scale in terms of condition, eg lets say someone did a nut and bolt
rebuild on a 1969 Sprite, how many 69 Sprites are there around that have had
nut and bolt rebuilds? and moreso, how many of them would be for sale?
Valuing a car like that can then become quite difficult because in the event of
a total loss, you cannot easily replace it with another with the same
age/condition etc. Now, the insurance company would want you to take as
'close a match' to your original car as possible, whether it was the same
year/condition or not, thats something you need would need to negotiate
with your insurance company BEFORE you take insurance with them.
Now going back to the 69 Sprite analogy, you would naturally want a 69 Sprite
with a nut and bolt rebuild and if you couldn't find one for sale, you would
want a suitable 69 Sprite rebuilt for you. That could run into 10's of thousands
of dollars for a professional rebuild and be far more expensive than the car
would be worth. You can now see just how important it is to have the correct
insurance valuation (or wording) on your car.
Nigel
"amukdigiphoto" < amukdigiphoto@... > 25803
Posted on October 1, 2003 11:23 AM
Posted to category(s) Engine (external) | Exterior | Miscellaneous | Restoration
