Apprasial Options

[Sailor Fred]

Has any one had any success in getting an independent appraisal of their car on record and accepted by their insurance company before any accident and claim is made? Trying to be proactive here and be prepared for the terrible day a fender bender totals my car. Obviously a 1998 vehicle has no valuation in the published insurance company guidelines but I plan to get a certified survey done this spring when the car comes out of storage. Any thoughts out there?
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[BimmerBreaker]

What you are describing is known as "agreed value" insurance. You will pay a higher premium for a higher "value" on the car.

[Sailor Fred]

Yes I am aware of this. I guess the question is "is there any benefit to settling with the insurance company for a higher value if the car is written off?" Or are they likely to ignore the appraised value even if it in the record with them?

[BimmerBreaker]

They can't ignore the value because per the policy you and them would sign, they agreed to the value you provided. There should be no need for a third party appraisal here. You call your insurance company and say "I want my car valued at X amount, because comparable models sell for that much and if something happens I want to be able to buy a comparable car". They say "as a result of this increased value, your rate would increase by Y amount". If you agree to their rate, and they agree to your valuation, then you have established an agreed value policy. You and the company will sign documents confirming the valuation. So they can't just later say "we don't want to pay out X amount"... the specific value is written into the policy. At least this is how it works in the US but I can't imagine Canada is any different. Also, not all companies will do agreed value policies, but most will.

The key factor here is that they will increase your insurance rates. It's the same as if you were insuring a car that was worth whatever you set the valuation at. For example if they are currently valuing the car around $10,000, and you say I want $20,000 valuation - the rates will increase to those of a $20,000 car...

Is it worth paying more to someday get more for the car in the event it's totaled or needs repair? That is a question nobody can answer for yourself and you would need more information to determine (like how much is the policy increasing). So I would call the insurance company and talk to them.

[Sailor Fred]

Thanks for this input. I will talk to my insurance company this spring when the car comes out of cold storage!