Is Agreed Value Car Insurance Right For You?

There’s more than one option when it comes to auto insurance. You may be a prime candidate for a type that’s known as agreed value car insurance. By considering your circumstances, this solution may be just what you need. Here are a few basics that you should know. 

What is Agreed Value Auto Coverage?

This type of arrangement calls for the owner of the vehicle and the insurance provider to come to terms on how much the car is worth, at least in terms of the amount of coverage provided. Arriving at the figure may take some negotiation. Once in place, you don’t have to be concerned about shifts in market value and how they might affect the amount of damages you can claim if a covered event occurs. The agreement that the two parties reach remains in effect for the term of the policy. You’ll find that in terms of the types of covered events, this solution will include all of the benefits that you see with other types of auto insurance policies. 

Can I Name Any Value That I Want?

You’re free to seek any amount of coverage that you want, but remember that the insurance provider has to agree to the amount too. This means you’re not likely to be able to insure a vehicle for a considerable amount above and beyond the current market value. 

One way to back up the figure that you’re seeking is to have the vehicle appraised. Qualities like the condition of the vehicle, whether or not it’s considered to be a vintage, classic, or antique vehicle will be factored into the appraisal results. Only get help from a certified appraiser; doing so increases the odds that the insurance provider will take the appraisal seriously. 

Is It More Expensive Than Other Options?

Depending on the amount of coverage you’re seeking, there’s a good chance that the agreed value car insurance policy will cost more for each term. At the same time, when you are intentionally choosing to insure the vehicle for less than the current market value, this type of policy may be less expensive. 

If you’re not sure, there’s no reason why you can’t get a quote for more than one insurance type. Make sure they include the same protections. After looking closely at the costs, you will know what to do. 

Does the Value Remain Constant?

The agreed value stated in the policy will remain in effect for the entire term. Before the policy is renewed for another term, you and the insurance company each have the option of seeking to negotiate a different value. That may be initiated by you or the provider. 

It’s not unusual for the agreed value to remain in place for several terms. When neither party sees any reason to make a change, that value may remain the same for years. Should you become aware that your classic vehicle has appreciated in value, you may be the one who seeks agreement on a different figure. 

Talk with an agent and learn more about how agreed value coverage works. You may find that it’s the ideal solution for your auto insurance needs.