Please remember that I am not an insurance representative. I am answering these questions to the best of my ability. In all cases you should discuss your insurance needs with your insurance agent.
1/ What is a 19A endorsement?
It is a separate endorsement on your car insurance policy. It is also known as "Agreed Value". This
endorsement will guarantee to pay the
amount stated on the endorsement in the event of a total loss. That amount is determined by the
appraisal of the car.
2/ What kind of endorsement does a regular insurance policy use?
The use of endorsement 19: Limitation Of Amount Endorsement - This endorsement is for the benefit of
the insurer, not you. It sets a limit to the liability of the insurer (usually the appraised value). At their
discretion they need only pay out what they consider to be the Actual Cash Value (ACV) of the car or the
appraised value - whichever is less. It is possible that the insurance company will attempt to settle for
less than the appraised value (even though your rates were based on the appraised value).
Unfortunately,you are at the mercy of your insurer in the event of a claim with the OPCF 19 endorsement.
3/ What endorsement is better for my collector vehicle?
You likely want a 19A endorsement, agreed value. Insurance companies that offer 19A understand the
uniqueness of the collector vehicle market. They do have restrictions on use but this is more than
compensated for by lower premiums. We don't drive our special cars like we do a daily driven vehicle
so these restrictions really are not onerous. Endorsement 19 is used for daily driven vehicles because
these vehicles are subject to depreciation. Endorsement 19 makes sense for regular transportation. 19A
makes sense for limited use special vehicles.
4/ What insurance company should I use?
I do not endorse any particular insurance company or broker. I pride myself on being independent and
honest. Many people use their current broker. Others use brokers that specialize in collector vehicle
5/ What can I do to increase the value of my vehicle?
There is not one answer to this question but I will try to give some pointers.
- The most important factor is quality. Quality of workmanship and quality of materials. Your budget will
dictate what you can do but do the best you can.
- Lose the cheesy stuff. In general, factory appearing is better than aftermarket. A stock appearing 'built'
engine is usually better than 'built' but looks like Canadian Tire. Aftermarket is usually ok if it is vintage.
In fact, vintage stuff can look great and command high prices. Just think of a flat head Ford V8 with an
Edelbrock head on it.
- Keep modifications to those that are popular. You may like bright purple and huge hood scoops but how
many others do? If no one else wants your car then it won't have as high a value. This is only meant to be
"in general". We all see hot rods we love but we also see rods that we think are poor. Better suspensions,
overdrive transmissions, peppier engines are all examples of popular modifications.
- Don't modify rare vehicles. Some vehicles are worth more stock. Some vehicles are worth more modified.
Making modifications to Boss 302's, hemi 'Cuda's, etc hurt the value. No use debating with me. Modifying
a Barracuda, Nova or Mustang tastefully usually increases value. Just remember that not all Nova's are
the same. I would not modify an SS396 Nova but I would a SS350 (maybe). You need to think it through.
- Original paint is worth more. As long as it is presentable.
- Cars are only original once so a well preserved original is going to be worth more than a restored vehicle.
- Original parts are worth more than reproductions. Sometimes there is no choice but the rule still applies.
- Performance is a big influence. Performance is timeless. But it has to be either factory performance or
tastefully done modifications. NOS and roll bars these days are dirty words, particularly to insurance
6/ Can I add factory options and add value?
Many factory options can be added that will increase value. You have to be careful with your money
though. Often you will spend more money adding the option than what it is worth. The closer your car
is to concours level the more negative adding options is. If you desire your Corvette to be Bloomington
Gold then you will be subtracting value. At these rarefied levels purists demand their cars to be as the
factory built them.
7/ What are your thoughts on values?
- We all cannot own hemi 'Cuda's. There is always an upper limit for a value. Don't fret it.
- Your insurance premium is based on the value of your appraisal. Does it makes sense to place too high a
value on your vehicle?
- I try to be realistic and balance many factors. One factor is wholesale vs retail. How hard is it to find
another, similar vehicle? How much money do you have into the vehicle? How well done is the vehicle?
How popular is the vehicle?
- If you hire me to do an appraisal for insurance purposes then that is what you get. Values for insurance
are at the high end of reasonable. Value for sale can vary between desperate, likely and grasping for
straws. If you have to sell tomorrow then you are desperate. If you can wait for a motivated buyer then you
will get a higher dollar.
- Highly modified cars are hard to get a predictable value for. Stock cars are easier because there can be
more published data available to compare against.
- There is a natural value hierarchy with most vehicles. To use a '69 Camaro as an example. A low option 6
cylinder has the lowest value and a 427 COPO has the highest value. Unless a low end vehicle has
sentimental value it is generally not worth it to restore it to the same level of quality as a high end
vehicle. It is easy to get over your head on a car. Think things through before you leap.You may put
$60,000 into restoring a car that I can only put a value of $30,000 on.
- Classified advertisements generally cannot be relied on for value comparisons. Owners do not always
tell you about problems. Pictures can lie. What it amounts to is I know your car. It is before me. I do not
know the true condition of advertised vehicles and how they compare to yours.
- Rare is not necessarily desirable. One of one because it has a red bench seat does not make it worth
more. Rare because it is a Cutlass with the factory W31 option does.
- In the end, any value I place on your special vehicle is simply my best opinion. We can discuss why I
placed a particular value on your vehicle.
- Low mileage adds value if it is unusually low and the condition warrants it. Low mileage and poor
condition? What do you think? 50,000 miles is not low mileage.
- Supply and demand has an effect on value. Early Mustangs were built in the millions but the demand is
equally large. How many people want a Skoda?
- Vehicles that are driven do depreciate. The depreciation in condition is usually quite gradual but it does
impact value. A nick or scratch in the paint. An oil leak develops, etc.
- Our old cars generally also appreciate over time. That beautiful Studebaker is worth more now than 30
years ago and likely will continue to slowly increase in value.
- Values can be really lumpy over time. They can dive and then increase quickly. They can stay level for
years. It depends on the particular vehicle, the economy, whether the prime minister has a head ache, for
unknown reasons, etc.
8/ Is my car an investment?
Most of our old cars are not investments. It takes a knowledgeable person or a lucky person to make
money on old cars. I suggest you enjoy your old car for what it is and never forget why you bought it in
the first place.
If you have any other questions please feel free to contact me.