So your insurance does not require an appraisal... Are you really saving?

So You Don’t Need An Appraisal…

That’s great, or is it? A recent experience brings to light the relevance of the appraisal requirement for your antique and collector car. Are you really saving? Yes, an appraisal is an added expense every 5-6 years, but is it actually worth it in the long run?

Recently I had to insure a project car with the 'no appraisal required' company as it made sense at the time to allow me to alter the value each year to reflect the money invested throughout the the  progression. At the end of the majority of the project, I was unable to reach an agreed value with my insurance company and decided to go and have it appraised for $150.00.

My appraisal came back at a valuation of $21,000.00 more than what the company was willing to insure it for. I decided to cancel and add it to my existing policy with my other already-appraised collector cars.  I was surprised to learn that I would have savings of $111.00 per year with the annual premium. Over the course of 5 years I would save $405.00 ($555.00 - $150.00 appraisal cost) on insurance as well as adding $21,000.00 of coverage in the event of loss or upset.

So you don’t need an appraisal, but are you really saving any money? Are you protected appropriately? Is your pride and joy really covered? Find an appraiser that you trust and establish a relationship to protect your investment.

*Pricing above based on 2016 values and costs.

 For your peace of mind, make sure you take the time to check into what your insurance options are for insuring your vehicle. If you currently do not require an appraisal but are unsure of your vehicles value please contact us as we offer services to assist you that are much cheaper then an insurance appraisal.

In the summer of 2022, while we were just getting back into the swing of things there was a tragic event in my home town. It hit close to home (literally and figuratively) as of the three classic cars involved, two of them were my clients with cars that I had the recent pleasure of evaluating. The third car was not; and with a company that does not require it to have an appraisal. 

I am still sick to my stomach that any classic car owner would have to go through this... Especially when they do everything right and follow all the rules. Parked off to the side, attending a proper sanctioned car show, a show run by a legitimate business raising money for local charity, seasoned volunteers operating a gate and supervising the lot.

Sometimes it simply is unavoidable no matter how careful you are. My heart goes out to these car owners and the people that were with inches of serious injury or death this day. I hate looking at these photos but it is a reminder to everyone to make sure that you are covered. I know all of the vehicle owners through business or simple local car community interactions. The vehicles we appraised were covered and owners compensated accordingly. Unfortunately the owner of the car that was not appraised will come at a cost to the owner to restore the car back to the way it was before their loss. 

Whether you choose us or another appraiser we highly recommend that you have your vehicle appraised by someone with experience and up-to-date resources and knowledge. Most often you know your car better than anyone and you need to make sure you have it covered properly. 

Safe travels everyone!

Mike Farrugia

Owner MJF Collector Car Services