I am just finishing a stock resto on a 66 Toro. I want to insure it for the correct value. I have to imagine there are several of you out there who have had their cars appraised for replacement incase of a total loss. I live in MN if that matters.

I was thinking I would insure it for around $30K as that seems like what it would cost to acquire another one and redo it to stock appearance. I am going to use American Collector Insurance and they don't require an appraisal...its just an "agreed on" value I set!

Please let me know if you have appraised values on a stock 1966 or what you are insured for...just want to do the right thing here.

Jeff

 

Agreed value is just that, an agreement between you and the insurance company that they will give you a certain amount in the case of a total loss.
If you feel that $30 k if about what the car is worth to you, and the company does not object, that's that.
"standard" insurance requires the Ins co. to come up with a market value based on the selling price of similar cars which is easy for say a 2005 Camry, but not for a 40+ year old anything because there are so many variables in condition.
I like agreed value as you tell them what you want for a payout and they charge you for that, no arguements about rarity, condition, modifications, recent major repairs, etc.
Just don't ask them to insure your grandma's low mileage '63 Dodge Dart for 1.2 mil because it has a 1 of 1 color combo!

 

I've never heard of a collector insurance company saying they don't need an appraisal and granting an 'agreed on value'. Not arguing it doesn't exist; because you say it does. But I'd bet my bottom dollar, there's going to be a catch.

So hypothetically, lets say I tell them my car is worth 45K (based on what other folks think), which it isn't. They say, OK and insure it for 45K sight unseen, based on my solemn oath and signature. 6 months later I tell them the car has been torched by a vandal while parked out on my property overnight and file a police report complete with pictures. They are just going to fork over 45K?? I think they would be asking for receipts of what you 'invested' into the car to prove that 'after the fact', which they will likely heavily discount too.

Appraisals don't cost much. If you think you have a $30K car, why wouldn't you document that with an appraisal? IMO that's the cheapest insurance there is. It represents the fair collector market value - appraisers don't have any vested interest in the car.

 

Thank you for your opinion. I trust USAA and any company to which they refer. I was surprised to learn they don't need an appraisal but after reading your post I will probably get one just to be on the safe side.

I posted my question simply to tap the collective experience and knowledge of the enthusiasts on the site. You shared yours and for that I thank you. I would not, however, be at all put in a bind by an insurance company asking me for all receipts on this car...would just pull out the folder with every last penny spent on it.

My intent was not to value the car "based on what other folks think" but rather to compare what I have put into the car to what others have valued theirs. I aim to educate myself prior to making decisions.

Jeff

 

Hey Jeff,
If I came across wrong I apologize for that. I've just never heard of this happening before. Like you, I keep all my invoices and repair history in an archive paper file 'just in case'.

I guess the bottom line is what you said earlier - trust/confidence in the insurance company. I respect that. On the other hand, I've heard many nightmare stories about people who also trusted their ins company and got 'shafted'. I'm a very strong believer in appraisals, and insurance for replacement cost on my car. That means I need to have it appraised every 3 years. That's cheap: 200.00 and I get 2 complete paper/electronic files. One I keep; the other goes to the insurance company. This includes digital photos with lots of details.

The appraised value of my car isn't even close to what I've got invoices for. Most of us with these hobby cars know how that 'works'.

If you do get an appraisal on the Toro (a beautiful choice BTW) I'd be curious to know if you guessed right about valuation. I looked up 66 Toro on the NADA and they suggest that it's close to 25K in very good condition. High value would be around 35K.

I'll keep watching to see what others can add to your knowledge base.

 

Insurance companies won't care what it costs to turn a basket case into a show winner. They'll only care what it would cost to go out and buy an already-restored '66 Toronado in the same condition as yours to replace yours should it ever need replacing. What you spend to fix up a car has no bearing on its final value.

The Old Cars Price Guide lists the value of a '66 Toronado in #1 condition, which is a car that is better than showroom new and never driven, at only about $18,000. In #2 condition, which is showroom condition, the value is $12,600.

Collector Car Market Review is even more conservative with a top value of about $15,000.

http://collectorcarmarket.com/menus/.../66oltodo.html

Now we can argue all day about the worth of these price guides, but I do think they have at least ball-park-value value. I think you will be hard-pressed to get an insurance company to agree to value your car at $30,000 when the market tells them they can go out and buy one just like it for about $12,000. But good luck!

 

you are in canada, so i know some of the rules are different... very different for classics.

But here in the states, if you go with one of the (there are quite a few) classic car insurance companies, that is EXACTLY what they will do. No questions asked, they will hand you a check for the agreed upon ammount.

That said, they are not going to let you put a rediculous ammount on a car thats clearly not worth that, and they have stipulations about how you store & use it (mileage & use restrictions)... but once they agree- its basically a no questions asked policy in the case of a total loss.

I have $15k on my 66 cutlass with hagartey insurance and they didn't even blink at that.

My neighbor has his highschool 66 chevelle insured for $30k.. its nice, but its not a SS, not anything rare to anybody but him... but he insured it as such because there is no replacement for that specific car. Again, no questions asked by hagerty other than required photos, and agreement to bide by the useage & storage restrictions.

If sure if there becomes a rash of total losses on cars covered with classic insurance, we will likely start having to have real appraisals, but if you think about it, classic cars are a relatively safe bet for insurance companies because they don't get driven much (and they have that restriction in writing) and they are usually carefully stored (again, they stipulate locked garages)... So claims are rare, so the cost stays low for everyone & they are able to offer this kind of coverage.

sorry for the long winded answer. I did lots of research on insuring & appraising classic cars when i was younger and didn't qualify for it for my own classics, and had to go through the dog & pony show for regular stated value insurance (worthless) on classic vehicles until i had a garage I could secure them in to qualify.

On a classic vehicle if you are not talking about "agreed value" coverage, it doesn't matter what the appraisal you get says, its just another peice of "proof" you would need in the event of a total loss, and still would not guarantee payment of that ammount.

 

http://www.nadaguides.com/Classic-Ca...p-Coupe/Values



I pulled up a value quote for a deluxe ToRo with air. Restored 66 is slightly above $30,000 You can always try hagerty etc etc

 

Thank you to all who have taken the time to post on this thread. I am quite new to the classic car arena and have found amazing information on this site. There are so many things to learn about the Toronado (let alone other Olds and nonOlds rides) and I have been having fun doing so.

I thought it might be an easy thing to chose the "right" insurance for my 66 but now I realize there is alot more to it than I imagined.

Jeff in Minneapolis