If they bought just one, there's a good chance the tire was not worth a lot.

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PostPosted: Thu Feb 14, 2008 1:11 am   Post subject:   

See how short _I_ can make it... replacement value = brand new car. ACV = what similar year/make/model would cost.

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PostPosted: Thu Feb 14, 2008 3:29 am   Post subject:   

Quote:
InsTeacher Posted: Wed Feb 13, 2008 10:10 pm



subject: my bank says I have



In conclusion, even though it sounds like cars are covered at replacement cost, they aren't. Most adjusters will look at vehicles that are comparable for valuation purposes, but that's about as far as it goes. It's up to the insured to prove if his totalled vehicle is worth more than the "average" vehicle. Recent engine work? New tires? New paint? Those types of things will, with proof, alter the ACV evaluation.



I have no idea of whether this will help. LORI!!! Could you put your two cents in here?



InsTeacher




Thank you.



I actually think I understand the difference. Although some parts are very similar.



One thought, you mention a few items that may increase the value like Tires & Paint. With "New Paint" would that apply to only a complete paint job or would smaller areas still increase the value? And tires would one new tire add value or would it need to be a set?



FK

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PostPosted: Thu Feb 14, 2008 4:42 am   Post subject:   

Normally, insureds do not buy just one tire. They buy a set of four, or perhaps two. If they bought just one, there's a good chance the tire was not worth a lot.

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PostPosted: Thu Feb 14, 2008 11:19 am   Post subject:   

Quote:
See how short _I_ can make it
show off.......
Quote:
"New Paint" would that apply to only a complete paint job
yes, or a custom paint job (which would generally be the entire vehicle as well)
Quote:
or would smaller areas still increase the value
NO this wouldn't increase any value, and another good point on both over all and repaired area paint, they ''could'' lower the value if its a low quality job...I've seen some 500 paint jobs, most by a company that sounds like...'something' OO...that are horrific! those actually lower the value...



RE: the tires...when you are determining the ACV of a vehicle it is a given that the tires are of 50% tread, any over that (say they are new, most have 11/32nds of tread), most carriers 'can' add that additional 5-6/32nds of tread to the value...most won't mess with it to be honest...I always gauge tires when I'm doing an ACV, if the owner has just bought new tires, many times they will want to 'swap' them out...which is fine as long as they put some on the total that will hold air etc....rarely (I never have) would you dock an acv for 'bad' tires....you have to remember that things that are maintence items do not add value, ie 'i just put new brakes on and changed the oil' sorry, I can't add for that...the ACV assumes the vehicle on a good used car dealers lot 'front line ready'.


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PostPosted: Sat Feb 16, 2008 6:13 am   Post subject:   

People do think that doing actual maintenance will increase the value of the car? like how does an oil change make the car worth more I wonder? I guess everyone has their way of thinking? So really a car would keep increasing in value as you maintenanced it right?

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PostPosted: Sat Feb 16, 2008 11:38 am   Post subject:   

Quote:
People do think that doing actual maintenance will increase the value of the car?
Yes, people think and say this all the time, but NO it does not increase the value...


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PostPosted: Sat Feb 16, 2008 12:15 pm   Post subject:   

Poor maintenance will do a lot of things but it will not decrease the value. A good example is a post from a forum member on bald tires, causing an accident.



I think good maintenance extends the life of the vehicle but not the actual value of the vehicle, but I could see people actually thinking this. Some peoples minds work in goofy ways, LOL.

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PostPosted: Sun Feb 17, 2008 11:05 am   Post subject:   

Quote:
Poor maintenance will do a lot of things but it will not decrease the value.
You are correct UNLESS (ain't ins. just FULL of ''unlesses'' ShockedLaughing ) that poor maintence is say unrepaired damage, torn up seats, hail damage etc..mostly cosmetic...course if you had a vehicle that was say hit while parked on the side of the road and the motor/tranny etc was shot, then that too would reduce the value.


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PostPosted: Sun Feb 17, 2008 2:30 pm   Post subject:   

LOL, you know what I mean though Lori, I try to extend the life of my vehicles as much as possible, don't want to car shop, pain, severe pain to deal with the shopping. so if I keep the maintenance up, oil changes, good tires, etc, etc. Not only will I extend the mechanical life but will also lower the chance of me sliding on bald tires and causes loss there. I would think these things are just common sense.

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PostPosted: Wed Feb 20, 2008 4:35 am   Post subject:   

Quote:
Actual Cash Value (ACV): The cost of replacing damaged or destroyed property with comparable new property, minus depreciation and obsolescence. For example- a 10-year old living room sofa will not be replaced at current full value because of a decade of depreciation. In our situation, ACV generally brings into play what you suggested:




Eek, thats a scary factor that I'm sure most unsusceptible people overlook.
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