OPCF 19A and OPCF 19
When insuring an antique Classic or Custom Car as well as a special interest car your insurer will require an appraisal there are 2 types of policies you will be dealing with either an OPCF 19A or OPCF 19 Policy. They are very simple with similar names but very and opposite meanings. One is a enhancement while the other is a restrictive policy. OPCF 19A - An Agreed on Value of vehicle insurance policy is as follows: This guarantee the value of your vehicle in case of a total loss. This is the valued amount set by your appraisal. This is the type of policy you want to have on your Classic or custom car. Most insurance companies that deal with these type of vehicles offer a OPCF 19A coverage as a standard. But important to ask the question any way.
OPCF 19 - This is a Limited Amount policy – This type of policy usually benefit the insurer more than the customer. It sets a limit that the insurer liable to pay out. The appraisal is considered and is usually honoured as the value. It is at the insurers discretion they only need pay out what they consider to be the Actual Cash Value of the vehicle or the appraised value which ever is less. Most antique , Classic and custom cars are appreciating in value, so in most case the Actual Cash In some very rare cases the value may be more than the appraised value .In most cases the value is lower than appraisals depending on how much time has past is the appraisal was completed . The maximum time should not be more than 5 years. It is your responsibility as the owner to keep your appraisal current. It is not recommended to go more that 3 years between appraisals. In most cases likely the insurance company will attempt to settle for less than the appraised value even though rates are based on the appraised value. The Unfortunate part is you are at the mercy of your insurance company in the event of a claim with the OPCF 19 policy. You can only hope that you will receive a fair settlement. So just as any other purchase you make you need to choose the right person for the job.Its up to you to protect your investment have it appraise. It is important to note a few very important points about your classic or custom car.
During Restoration:
During the restoration of you of the classic or custom car it is important to document the progress of your vehicle though an independent appraiser. Your insure in most cases will not accept your own documentation or photos . In the event of a loss coverage will be denied .
Changes Improvement & Up-Grades:
Making changes improvement or up grades to your classic or custom vehicle also need to be documented though an independent appraiser in the event of damage or loss of your vehicle. Upgrades and improvements can cover a wide range of areas such as
- Paint & body work
- Engine rebuild
- New tires & wheels
- Sound system up-grades
- Chrome replacement or re-chroming
- Interior improvements
These are just a few of the points to consider when doing work to your car. If you have completed work insure that your appraiser know exactly what has been done so he or she can document it properly for you. You know you car better than any one else. Good documentation is a very important point if you were ever to suffer a loss with your vehicle.
Appraisal Frequency:
Appraisal frequency is also a very important point to consider. Most insurance companies only require an appraisal every 3 to 5 years. This only protects the insurance company. At the rate that classic and custom vehicles are increasing in value in the event of a loss the insurance company will only pay you at best the appraised value. On a 5 year old appraisal that could be a considerable loss. Average increase can be as much as 5% per year. $25000 in crease of 5% per year after 5 year the value is now $32000. Of course there are may things to factor in such a s the condition of the vehicle, Originality, how sought after the vehicle , How rare the vehicle is , as well as many other factors.
Choosing an Appraiser:
In the antique automobile appraisal field. There huge discrepancy in the quality of reports being produced for the vintage car owners. While there are many excellent appraisers operating throughout the province, there seems to be just as many whose work could be called into question. Many include appraisers that only spend a few minutes looking at your cars and produce reports with details about parts you didn't even have installed. It is important to have a true and accurate report. You as the owner also play a very important roll in this. Insure who ever it is you hire to appraise your vehicle tell them any additional information that they may not be aware of.
Appraisals should be very detailed and reflect the true replacement value of the vehicles involved. It may be nice to receive a report on your car with a value far more that what you would ever expect to get for the car if you sold it privately. However, it will not be so pleasant when your insurance company, in the event of a claim, challenges the appraised value which they had initially accepted. With proper OPCF 19A coverage your settlement is usualy enough to purchase a comparable car . A combination of current market & book values and auction results from across North America or even the world depending on how rare your car was.This Should be used to determine the value for your car. For custom and modified cars the cost to build the car should also be taken into account . Always keep in mind this is your investment not the insurance companies. Trying to save a couple of dollars now could cost you much more in the future.
If you're not sure what type of coverage you have it should be listed or call your insurance company.
|
