Car Insurance Rate Champaign Illinois IL
Reader’s Question:
If after completely restoring my 1965 Ford Mustang two-door convertible which cost me $8,750 ( the work needed replacement for the dented quarter-panels, fixing some rust, painting the exterior with the original color, reupholstering the interior, and adding a new rag top), the car is now worth about $22,200. How would my car insurance rate in Champaign, IL be affected now that my car should have a higher market value?
Jane
Champaign, IL
Now is a good time for you to buy a stated-value policy if you do not want depreciation to start at the $8,750 you paid, but at the $22,200 your car is now worth. Without a stated-value policy, it is going to be harder for you to convince your insurer of the increase in your car’s value.
You also could get your insurer to provide you with a rider for improvements, but really the compensation will come on the back end. The appraiser should include upgrades, and you should definitely take credit for things that improve the value of your car. It is always advisable to touch base with your Champaign, IL agent or insurance company before you get into an accident; to be sure any upgrades are covered.
A word of warning though: Not all car improvements will result in an increase your car’s market value. In some cases, what you may see as an improvement may actually hurt your car’s value. Let’s say putting your truck on a high frame with huge wheels may make you feel like you’re on top of the world, but your insurer may not agree that it increases the value of the car since these changes appeal to a limited audience.
Tags: auto insurance
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