Can I insure my classic car based on an appraisal report?

Appraisal Report as a Guide

Under some policies, the classic car must be appraised to objectively determine its current value, but in the event of a claim, the payout will be based solely on the current market value at the time of the loss. This current market value will then be determined by a claims adjuster.

It is therefore possible that, in the event of damage, the current market value will be lower than the appraised value. In this case, the claims adjuster will use the appraisal report only as a guideline.

Payment based on the appraisal report

If the payout is based on an appraisal report (as provided for in Article 7:960 of the Dutch Civil Code), this is explicitly stated on the policy schedule, usually in a separate clause.

Sample clause text:

When assessing damage, the appraised value is used as the basis for determining the value of the damage. However, this is subject to the condition that the damage occurs within 36 months of the appraisal report being prepared and that you promptly notify us of the new appraised value in writing or electronically, so that we can adjust the insured amount.

In the event of damage to the motor vehicle, the payout will in any case never exceed the insured amount minus the value of the wreckage.

If there is no (valid) appraisal report available, the claims adjuster will base the assessment on the (possibly lower) current market value.

The appraisal report has expired—what now?

Most appraisers state in the appraisal report that the report is valid for 3 years. However, insurance companies apply their own validity periods for each rate, which are sometimes shorter.

If the appraisal report has expired and damage occurs, the insurance company will not pay out more than the current market value. It is therefore important that you keep a close eye on whether your appraisal report has expired.