Exner Expert 19,174 posts. Neil passed away 18 Sep 2015. You will be missed, Neil!
Posts: 19146
   
Location: bishop, ca | I've looked at the horrific photos, and there appear to be some economic total losses, here.
As far as a car's Fair market Value, if it had successfully crossed the auction block, well, that's pretty
much dispositive, there, assuming that some carrier will agree to extend Comp coverage onto a newly-purchased
car, that they hadn't yet received a dime-of-premium payment on, yet.
If it hadn't reached its Reserve, or hadn't yet crossed, then the collector's-coverage policy limits would apply (if
there ARE specified policy limits coverage on the car; otherwise, there are potential appraisal/negotiation difficulties
ahead, on some of these cars.
The total-losses may include a Caddie convie, a Nissan Unfair Lady, a Pantera (4-sure), a Trans Am, a blue Camaro,
that black 62 Fart, the Torino convie, and maybe that 70 R.R. hardtop.
The 70 Hemi Cuda convertible with the crushed A-pillars/windshield will be really tough to repair--the owner will probably
try to declare it as being an economic total loss, but his carrier (if any) will probably not be 'buying' the car as being
a 'total'.
The GOOD news about all of these cars' losses is that they will each receive individual damage appraisals and settlements,
once they are transported to a repair facility.
The BAD news is the discussion about a car's "diminished value" which allegedly would result from its
having been repaired and/or repainted.
Hopefully, the insurance carrier will point out that true-originality is not apparently a major consideration
among the deep pocket feeding-frenzied auction bidders, who apparently DO like the color "red" on a car!
Edited by d500neil 2010-01-26 4:22 PM
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Exner Expert 19,174 posts. Neil passed away 18 Sep 2015. You will be missed, Neil!
Posts: 19146
Location: bishop, ca | OK, going up/back to S.O.T's question, about a consignor having to buy-back his own car if its high bid does not reach
his own desired reserve: he still owns the car, after it crosses the block, so his (Comprehensive) insurance coverage
is not affected.
His carrier, if it does not have a Stated Value on its applicable Comprehensive policy limits, would probably declare that
the car's Fair Market Value (and, the basis as to whether it might be considered as being an economic total loss) was the
dollar amount of the (consignor-owner's own...) high auction bid on the car.
But, ironically, a consignor-owner who is forced to pay a buyer's-and-seller's premium on his own (non-selling) car might
stand to realize a significant net-profit on a HIGH-STATED-VALUE car which is declared to be an economic total loss, compared
to what the owner might have received by way of the high-auction-bid amount, on his car.
And, each owner can decide if he wants to retain salvage-possession on the remains of his car. His carrier
would merely subtract the "salvage value" of the car from the net Comprehensive coverage claim
proceeds that the owner receives.
Edited by d500neil 2010-01-26 4:17 PM
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Russo & Steele Scottsdale Hit by Tornado
Damage-1.jpg (284KB - 156 downloads)
