4 Facts You Should Know About Agreed Value Car Insurance

When you’re considering a change to your insurance coverage, it never hurts to see what is available. What you may find is that making a switch to some sort of agreed value car insurance would work well in your case. Designed as a policy where the client and the provider agree on a car value for the coverage, this works well in a lot of cases. Here are as few basic facts that will help you decide if this is right for you.

The Value is Locked in For The Current Term

The nice thing about this type of coverage is that happenings in the marketplace will not affect the coverage for the duration of the current term. That’s not necessarily true with other forms of auto insurance. In the event an accident leads to totaling the car, you will know in advance how much money to expect.

Since the value is locked in for the term, there’s always the option to negotiate a new value before the next term begins. You may start that process, or the provider may do so. See it as a way to ensure that the car is always protected with a sufficient amount of coverage.

Agreed Value Coverage is Popular Among Car Collectors

There are certain sectors of the consumer market that find this type of insurance coverage particularly appealing. Among them are those who collect classic or vintage vehicles. This approach often allows them to secure more protections than would be possible with other auto insurance options.

The same holds true for those who own modified or customized vehicles. Thanks to this form of coverage, the odds of receiving enough benefits to recoup the loss and customize another vehicle are high.

This Approach Can Save Money

While it’s not generally viewed in this light, opting for agreed value car insurance does provide the opportunity to enjoy a lower premium. This is because the client can always seek a coverage amount that’s lower than the current market value. Depending on the make, model, and condition of the vehicle, this could result in lower premiums.

Keep in mind this strategy does mean greater exposure in the event that an accident occurs. It could mean more out of pocket expenses. Even so, this approach may be helpful if you are going through a short-term financial slump, and need to spare every penny that you can.

This Type of Auto Insurance Is More Readily Available Than Many People Realize

Among those who know about agreed value auto coverage, there is often a perception that it’s only for those who are financially well off, own one or more classic vehicles, and can afford to pay more for their insurance plans. While this approach does work well for those kinds of consumers, the fact is that anyone can secure agreed value coverage if they like.

Could agreed value insurance be right for you? The only way to know for sure is talk with an agent. Learn more about how it works, what sort of benefits are included, and how much it would cost. At that point, you will be ready to make a decision.

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