Atlanta is home to some of the most popular car clubs in the country. It shouldn’t be a surprise because you probably see luxury, exotic, and classic cars on the streets of Atlanta on a regular basis. These car clubs often get together and go through the Metro areas to grab some attention for the community.
But what happens if these cars are in a crash? Most people are aware that cars usually aren’t good investments and often lose value quickly. So how do insurance companies help recover not only the property damage but the loss in value and the emotional damage that comes with an exotic or classic car being in a wreck? There are a few different systems for valuing these vehicles, but the available solution isn’t always what the vehicle’s owner expected. Contact our Atlanta car accident attorneys today.
Far Beyond Blue Book Value
When it comes to valuing a standard vehicle, the insurance company is involved will look at the street value or real value of the car just before the crash. They may take into account prior accidents and the age of the vehicle. But what about classic cars aware the age of the vehicle has contributed to value? Or exotic cars which should, in theory, hold their value for a much longer duration of time than a standard vehicle?
There is a separate way of establishing the value of luxury, classic, and exotic vehicles. The most common is to use the National Automobile Dealers Association guide, which provides a complete list of classic and collectible cars with average values.
However, it’s more likely that you’ll need to find an expert in exotic and classic car valuation.
Luxury and Exotic Car Insurance
Luxury car insurance is often only available for vehicles from specific manufacturers or vehicles that qualify as classic. Common luxury manufacturers include BMW, Mercedes-Benz, Lexus, and many exotic manufacturers such as Maserati. Not only is it more expensive to cover a luxury car, but you likely need additional insurance.
If you called into Allstate or GEICO to get insurance on an exotic vehicle, you would get quoted on much higher rates. The higher rates play off of a few different factors. First, as a high profile vehicle, it may be more susceptible to damage, including robberies and vandalism. Second, most luxury models are built for speed, and vehicles built for higher speed often come with a higher crash risk. Third, insurance companies provide you with access to an attorney if you caused an accident, and owning an exotic or luxury vehicle may make you a target for accidents as people might suspect that they could get more compensation from you.
It is imperative that you have luxury or exotic car insurance and to cover the actual value of your investment.
Diminished Value and Recovering from That Loss
Georgia has a unique law discussing diminished value. Diminished value accounts for future loss or potential loss. It means that this is not a direct out-of-pocket expense, but instead, the victim is missing out on value from their vehicle because of the crash. Insurance companies don’t make a habit of paying for the diminished value unless it’s brought up during settlement negotiations.
Additionally, it’s uncommon that an insurance company will agree to pay for diminished value. But, in the instance of luxury and classic cars, the diminished value becomes a primary topic. A high profile vehicle can retain its value for a long duration of time, but an accident or even a parking lot scrape can drastically bring the value of the vehicle down.
The diminished value should be part of the appraisal process, where they can assess and identify the full value and the current value of the vehicle.
Have Your Atlanta Automobile Accident Attorney Handle This Delicate Matter
If your crash involved a classic car or an exotic or luxury vehicle, then you should seriously consider bringing an attorney onto your claim. Your insurance company may be required to provide you with an attorney, but they’ll most likely try to handle it in-house. That means that your insurance company will look out for their best interest and do as little as possible for you. The at-fault driver’s insurance provider is also not going to be working in your favor.
Instead, call the Weinstein Firm to have an Atlanta automobile accident lawyer evaluate your case and ensure that your vehicle goes through the proper appraisal. Don’t risk missing out on thousands or tens of thousands of dollars in compensation because your insurance provider wasn’t sure how to value your car.