While you’ve heard of agreed value auto coverage, be mindful that some of what you’ve come across isn’t factual. One of the best things to do is to go to a professional who can tell you exactly how this option works and why it may be right for you. In the meantime, here are a few of the common myths about agreed value car insurance that you can set aside.
You Get to Unilaterally Set the Amount of Coverage
There are some that believe this insurance option allows customers to set the amount of coverage all by themselves. That’s not how it works. Instead, the client and a representative of the insurance company sit down and discuss figures. Ultimately, the two arrive at an amount of coverage that both parties consider fair.
It helps to have some sort of basis for the amount you’re seeking. One way to arrive at a figure is to have the automobile appraised by a certified professional. With the detailed report provided by the appraiser, you have something in hand to show the insurance company, and hopefully pave the way for getting the amount that you want.
That Amount Remains in Effect From Now On
Another myth is that the amount named in the policy remains in place from now on. In fact, there’s the option for you or for the insurance company to seek a change in that figure just before the current term ends. This is to your advantage, especially if you own a classic car that continues to appreciate in value.
It’s not unusual for the amount to remain constant for several terms. As long as you’re happy with the figure, there’s no need for you to take action. Should the provider think that it’s no longer a good fit, expect a call to sit down and take a fresh look at your agreed value car insurance policy.
Agreed Value is Always More Expensive
Conventional wisdom dictates that this form of auto insurance will always cost more. It’s true that in many cases, the premiums will be higher than other forms of coverage. However, don’t assume this will always be true.
Depending on the amount of coverage you are seeking, this solution could end up being less expensive. You can crunch the numbers with the help of an insurance professional and see how things fall out. Assuming the policy is a good fit overall, and you like the premium, there’s every reason to go with this coverage option.
And It’s Always The Right Choice
Some will try to tell you that agreed value insurance is always the right choice. The fact is that opting for this sort of coverage works better in some cases than in others. This is especially true when there’s something special about your vehicle.
You’re likely to find agreed value coverage to be a good fit if you own a classic or antique vehicle. It’s also often a good choice for custom or modified vehicles, providing the modifications increased the market value. This is another reason to have the car appraised before you make any decisions.
Do consider this option along with other insurance choices. In the long run, you’ll be happier with the coverage, and the amount of protection the policy provides.