APPRAISING THE VALUE OF A RAT ROD FOR INSURANCE

Rat rods? Even insurance companies such as Hagerty and Grundy who will insure just about any vehicle sight-unseen – with no appraisal necessary – are confused when it comes to providing coverage for a rat rod.  A typical policy states it can’t be a daily driver, and you also have to have another vehicle insured for each driver to use as a daily. Often, the only way you can get your coupe covered as a daily driver is with liability only. The insurance industry doesn’t like old cars on the road. Making them difficult to insure is one way for them to solve the problem.

Your rat rod must be used on a very limited basis, such as exhibitions, club activities, and parades or similar events according to many policies offered. From Wikipedia: A rat rod is a style of hot rod or custom car that, in most cases, imitates the early hot rods of the 1940s, 1950s, and early-1960s. The style is not to be confused with the somewhat closely related “traditional” hot rod, which is an accurate re-creation or period-correct restoration of a hot rod from the same era. The typical rat rod is a late-1920s through to late-1950s coupe or roadster, but sometimes a truck or sedan. Rat rods often appear unfinished and, at most, primer-only paint jobs are applied; satin, or matte, black and other flat colors are also common. “Natural patina” (the original paint job, with rust and blemishes left intact); a patchwork of original paint and primer; or bare metal, in rusty or oiled varieties, with no finish at all are some of the other finishes that may be used. Interiors of rat rods can range from spartan to fully finished, though this is typically the final phase of construction. Rat Rods have actually evolved over the years and have gone through several different changes and phases. They require imagination and craftsmanship to be done right. Rat rods are built to be enjoyed and driven. The St. Lucie Appraisal Company understands your build and can provide an appraisal which will satisfy the most demanding insurance underwriter.

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REQUEST AN AUTOMOBILE VALUATION APPRAISAL – $275.00 for most cars.


Please email photographs and build information to contact@stlucieappraisal.net

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A Chevrolet Diminished Value Claim in Maryland

Regarding a 2017 Chevrolet Malibu LT Sedan with 21,383 miles that was involved in a left rear collision that caused $2,913.35 in damage. The car was not disabled/towed  and had  no structural damage or air bag deployment.The claimant made a third-party inherent auto diminished value claim for the vehicle’s loss in value. Once a car is repaired after a collision, it is worth less, often much less depending on the severity of the damage. Regardless of how well the repairer did his job, nobody will pay as much for a previously wrecked car as they would for an identical one that was never in an accident. Presenting a diminished value claim and following it through to a satisfactory conclusion is a daunting task for the average person. Obtaining a comprehensive Diminished Value Report is key.

We learned from these examples from sales managers at Chevrolet dealerships in Maryland – When you have a vehicle with an accident report it is possible to lose about 10% of the vehicle’s value. Also, 10% off the fair market value is normal but how it was reported could play a role in the loss and also if the frame wasn’t compromised and the car was properly repaired the loss could possibly reach 15%.  The opinions of unbiased experts form the basis for the most comprehensive Auto Diminished Value Appraisal available. We obtain six of them which absolutely  puts the diminished value figure prepared by The St. Lucie Appraisal Company in the ballpark. This is what the car owner will experience in the real world.

Dealers providing opinions regarding diminished value were given information specific to this vehicle including year, make, model, mileage, color, options, any other pertinent equipment, date of loss as well as the nature of the repaired damages and the manner in which the vehicle was repaired. Dealer opinions are based on personal knowledge and access to auction results. Dealers were advised that this vehicle was properly repaired.

We contacted several Chevrolet dealers in Maryland in order to establish how these repairs and the resultant repair history would impact this vehicle’s Fair Market Value (FMV.) Dealers were provided with an evaluation of the vehicle’s condition both prior and subsequent to repairs.

Description of damage: Non-disabling collision damages to the left rear not including  damage to structural components. Repair cost $2,913.35  LKQ (used) and/or aftermarket parts were utilized in the repair/not factored in to the diminished value.

The average of six (6) deductions was 14.05%. This is the percentage of Diminished Value to be taken from the FMV at the time of loss.

We established that the above captioned vehicle had a Fair Market Value (Average Trade-In Value) of approximately $17,500.00 at the time of loss. The Diminished Value was $2,458.75.

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QUESTIONS & ANSWERS ABOUT AUTOMOBILE DIMINISHED VALUE

paypal payment buttonThe fee for an Automobile Diminished Value Report is $275.00. You may also make your Credit Card Payment by telephone, call 772-359-4300.

After making your secure payment please email the completed body shop estimate or insurance company damage appraisal to contact@stlucieappraisal.net

Service in Baltimore, Bowie, Frederick, Gaithersburg, Hagerstown, Rockville and throughout Maryland.

Service in Allegany, Anne Arundel, Baltimore, Calvert, Caroline, Carroll, Cecil, Charles, Dorchester, Frederick, Garrett, Harford, Howard, Kent, Montgomery, Prince George’s, Queen Anne’s, Saint Mary’s, Somerset, Talbot, Washington, Wicomico and Worcester Counties.