An Act Concerning The Valuation Of Classic Motor Vehicles Following Constructive Total Losses.
Should HB 5858 become law, it will necessitate a revision of how classic motor vehicles are valued when insurers declare them a constructive total loss. This bill targets a niche aspect of the automobile insurance market, potentially benefiting classic car owners by ensuring that their vehicles are not undervalued based on inappropriate auction data. The overall aim is to ensure that vehicle owners receive an equitable settlement that reflects the true worth of their classic cars rather than relying on potentially misleading auction prices.
House Bill 5858 is aimed at addressing the specific valuation process for classic motor vehicles that are declared a constructive total loss by property and casualty insurers. The bill stipulates that, in determining the settlement amount to be paid to claimants, insurers cannot utilize any retail values derived from online auctions. This regulatory change is intended to provide more favorable settlement outcomes for owners of classic vehicles who may face undervaluation in the case of an insurance claim following significant damage to their vehicle.
There may be some contention surrounding this bill, particularly from the insurance sector that could argue against the constraints imposed on valuation methodologies. Insurance companies may see the prohibition of using online auction values as a limitation to their ability to accurately assess vehicle worth based on market conditions. Proponents assert that the prohibition will protect classic vehicle owners from depreciation that does not reflect their vehicle’s value as a collectible, while opponents may stress that it could increase costs for insurance providers, which could be passed down to consumers.