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 Dodge Diminished Value Claim in Texas

Regarding a 2016 Dodge Charger SRT 392 with 31,000 Miles that was involved in a rear-end collision that caused $600.00 in damage. 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.

Upon querying Dodge dealers in Texas, we learned from these three examples – if the car has under $1,000.00 worth of damage and it was fixed correctly you should not be looking at taking more than a 10% loss, plus being that there is a bad Carfax you would be looking at taking a loss around 10% plus normally at any dealership there will be about a 10-15% loss for a minor to mild accident. The opinions of unbiased experts form the basis for a comprehensive Auto Diminished Value Appraisal. We obtain six of them which puts an appraisal 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 Dodge/Ram dealers 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 Rear not including structural components. Repair cost $600.00. LKQ (used) and/or aftermarket parts were not utilized in the repair/not factored in to the diminished value.

The average of six (6) deductions was 10.83%. This is the percentage of Diminished Value to be taken from the Fair Market Value at the time of loss.

We have established that the above captioned vehicle had a Fair Market Value (Average Trade-In Value) of approximately $40,000.00 at the time of loss. Diminished Value = $4,332.00

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QUESTIONS & ANSWERS ABOUT AUTOMOBILE DIMINISHED VALUE

 

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The 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

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