For years, you’ve maintained a stated value auto insurance policy. While that’s fine, could it be that opting for agreed value car insurance would be a better choice? By taking the time to explore this solution, you can decide if it’s for you and what it would take to make the change. Here are some basics that will help.
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Learn More About Agreed Value Coverage
Your first step is to learn what agreed value coverage is, what types of automobile owners would be most interested in it, and what sort of benefits that the policy is likely to include. What you will find is that the range of benefits and protections are a lot like what you already have in place, but with some key differences.
One of the more important ones is knowing what you would receive if the vehicle was totaled in an accident. With the coverage you have now, there’s a good chance that the provider has the option of basing the payout on two different options. You can bet that the provider will choose the least expensive of the two. By contrast, you know what figure will be used if you have agreed value coverage.
Compare It With Your Stated Value Insurance Policy
Do take the time to compare the benefits found in an agreed value policy versus what you have in the stated value policy. Your goal is to determine if all of the protections and benefits that you are likely to use is found in both of them.
For example, make sure both include provisions that cover all or most of the cost of renting a car while yours is being repaired. You may also want to ensure there are clauses that allow your insurance to provide protection if you rent a car to use on a trip. Consider creating a spreadsheet that allows you compare the two polices point by point. This will tell you if there’s anything missing that you consider important.
Talk With Your Agent About How to Make the Switch
At this point, you’re likely to feel even better about making a switch to agreed value car insurance. Now the focus is on when it will happen. Will you need to wait until the end of the current term of that stated value policy? That’s not always the case.
It could be that your provider is willing to roll your coverage into a new policy immediately. This would mean that your stated value coverage would end on the last day of the current billing period, and the new agreed value coverage would go into effect at the same time. There would be no lapse in coverage at all. Your agent can go over the options with you, and help set up the process.
Proceed Based on What You Now Know
You’ve compared what each type of auto insurance has to offer. Some coordination with the agent has allowed the two of you to come to an agreement on the value that will apply to the new policy. There’s even a plan in place to make the transition. Now you’re ready to act.
Using the process that you and the agent worked out, provide your permission to initiate the move to agreed value coverage. Retain copies of any confirmations related to the end of the old plan and the implementation of the new one. On the date that the new plan is to go into effect, confirm that everything is in place. Once that’s done, sit back and relax; you will know that your coverage has gone from being satisfactory to being exactly what you want.
