Classic Car Property Damage

I have a classic red 1967 Ford Mustang convertible car. It was my pride and joy for many years. Unfortunately it was damaged in a fender bender. I could not afford the special insurance rider for this car. So I do not have collision coverage. I also know that some of the damaged car parts cannot be replaced with original parts. I will have to purchase reproduction parts. This will substantially lower the value of my car. What claims can I make against the driver for classic car property damage?

You should sue the other driver for the property damage claim to the Mustang. You have claims for towing to the repair shop and loss of use of your vehicle while it is being repaired. The property damage claim is a little more complicated.

The normal rule is to evaluate the property damage claim in two parts. First, the Judge (or jury) trying the case must find what is the reasonable cost of repairs. Second, the Judge must find the difference between the market value of the car immediately before the accident and the market value of the car immediately after the accident. The claim for property damage is the smaller of these two numbers. Johnson v Scholz, 276 App Div 163, 93 NYS2d 334 (2d Dept 1949).

In your case, the smaller number will be the cost of repairs. This does not seem fair since the car has appreciated in value since you purchased it.

The Standard Rule vs. The Classic Car Property Damage Exception

In a typical property damage case, if your car is fully repaired to its pre-accident condition, you cannot claim “diminished value” just because a Carfax report now shows an accident. Parkoff v. Stavsky, 109 AD3d 646 (3d Dept. 2013).

However, New York makes a major exception for property that increases in value over time.

In the landmark case Franklin Corp. v. Prahler (91 AD3d 49), the court established that where property has increased in value since its purchase (specifically citing a collector sports car as a primary example) and repairs cannot fully restore its pre-accident market value, a different rule applies.

For a classic car, your damages are measured strictly by the difference between the vehicle’s market value immediately before the crash and its market value immediately after the crash.

Recoverable Losses in a Classic Car Property Damage Claim

Because classic cars often require specialized restoration, specialized parts, and expert transport, your property damage claim can include several additional elements:

• Loss of Use: If your classic car is repairable, you are entitled to compensation for the loss of its use during the time reasonably needed to complete those repairs. Johnson v. Scholz, 276 App Div 163 (2d Dept. 1949). This is typically proved through expert testimony regarding the rental value of a similar vehicle.

• Towing and Storage: You can recover the reasonable cost of towing your damaged collector vehicle to a specialized restoration garage. Moore v. Metropolitan St. Ry. Co., 84 App Div 613 (2d Dept. 1903).

• Deductions for “Betterment”: Keep in mind that a party cannot legally benefit from an injury. Gass v. Agate Ice Cream, 264 NY 141 (1934). If the repairs actually make your classic car more valuable than it was immediately before the crash, the defendant is entitled to have that specific increase in value deducted from the repair bill. Parilli v. Brooklyn City R.R., 236 App Div 577 (2d Dept 1932).

Proving Your Case: The Need for Expert Appraisals

In a standard car accident claim, insurance adjusters rely on automated database valuations. This will not work for a classic car.

Because collector vehicles do not have a standard, depreciated market value, proving your damages requires specialized evidence. To successfully recover the true diminution in value of your classic car, you must be prepared to present:

• A Certified Specialty Appraisal: An evaluation from a certified classic car appraiser establishing the pre-accident collector value.
• Historical Maintenance and Restoration Records: Proof of the vehicle’s condition, original parts, and documentation of its historic authenticity before the impact.
• Expert Testimony: If your case goes to court, expert testimony is vital to explain to a jury why a repaired classic car is worth significantly less than an untouched, original model.

If your collector vehicle was damaged by someone else’s negligence, do not let an insurance adjuster treat it like a used sedan.

By James Santner, Esq.

If you have questions about a similar situation, feel free to contact us. Consultations are free and there is no fee unless we win.