The biggest concern that owners of classic cars have when insuring them is getting back the full collector's value of the car - not just the book value. For example, the book value on a 1965 Ford Mustang convertible may be $500 for an unrestored car. However, the car may be worth $10,000 in restored condition. So how do you get an insurance company to pay out the $10,000 instead of the $500 for your classic car?
The insurance industry's solution to this problem is an optional coverage they call stated-amount coverage. Here's how it works: You collect and send to your insurance company both interior and exterior photos of the car and a market-value appraisal from a competent appraiser. The car is then listed on the policy for $10,000 (or whatever it's worth), and you pay a premium based on that $10,000.
If the car is stolen, how much do you expect to collect? Ten thousand dollars? Not likely. Stated-amount coverage pays the market value of the car at the time of the loss, not to exceed the stated amount (in this case, $10,000). People who buy stated-amount coverage mistakenly expect to receive the appraised value of the car if it is stolen or totaled. In the case of the Mustang, however, if the market has recently soured and the market value of the car is $6,000, you receive $6,000 - not the $10,000 that your premiums have been based on. Now assume that the market for the Mustang has improved, and the car's value is $13,000. How much will you receive? Unfortunately, $10,000 - not $13,000.
Obviously, an inequity exists here. The major pitfall of stated-amount coverage is that it pays the lesser of the stated amount and the actual value of the car at the time of the loss. It does not pay any increases in the car's value.

1965 Ford Mustang Convertible

1965 Ford Mustang Convertible

1965 Ford Mustang Convertible

1965 Ford Mustang Convertible

1965 Ford Mustang Convertible

1965 Ford Mustang Convertible

1965 Ford Mustang Convertible

1965 Ford Mustang Convertible

1965 Ford Mustang Convertible

1965 Ford Mustang Convertible

1965 Ford Mustang Convertible

1965 Ford Mustang Convertible

1965 Ford Mustang Convertible

1965 Ford Mustang Convertible

1965 Ford Mustang Convertible

1965 Ford Mustang Convertible
Pictures From Google Images
1965 Ford Mustang Convertible -
This blog is all about the unseen photos and Car UPG of latest cars collection. This is just for the entertainment and fun. Here we have a lot of latest and pictures of cars and vehicles. The source of the Car UPG obviously google. We google respect and that is why if some one have any issue about the rights we are ready to remove the post. If you want to save the Car UPG just click and "Save As". Thanks.
 
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