There’s more than one option out there for auto insurance. While you may be tempted to stick with stated value coverage, it never hurts to find out what agreed or guaranteed value coverage has to offer. In fact, you may find that opting for agreed value car insurance provides some advantages that you will find helpful. Here are some reasons to look into this type of auto coverage.
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The Ability to Lock in a Value For Your Vehicle
One of the primary characteristics of agreed value coverage is that you get to work with the agent to determine the value assigned to the covered vehicle. This figure can be in line with the current market value or it may be a little higher or a little lower. The goal is to identify an amount that you like and that the insurance company will honor in the event the vehicle is damaged in a covered event.
This is somewhat different from assigning a value in a stated value policy. With that option, you can choose to accept the value offered by the provider, or you can go with a lower one. If a covered event pays out, you may or may not receive all of that value. By contrast, agreed value policy ensures that you will receive the full amount found in the policy terms and conditions.
No Worries About Shifts in Market Value
Why is is possible to providers to choose the lower of two figures for payouts? There are several reasons. One of them happens to be the current market value of the vehicle. If it’s decreased, you’re likely to find that the provider will use the terms in a stated value policy to pay the lowest amount possible.
That’s not what happens with agreed value coverage. Whatever happens in terms of demand and other factors that impact the market value, you don’t have to worry about them affecting your coverage at all. If an event happens, you know what to expect.
You Have Additional Control Over the Insurance Costs
The control that you have over the value found in the policy terms and conditions makes it easier to manage your insurance costs. When paired with the deductibles that you select, there’s the ability to ensure that your premiums fit into your budget without creating much stress.
It’s not just about making sure your insurance policy doesn’t lapse. It’s also about protecting your credit. Failure to pay premiums on time and allowing coverage to lapse can adversely affect your credit rating. This could also lead to problems since you don’t have coverage for a time. Opting to do what you can to control the premiums will help you in more than one way.
A Great Coverage Option for Vintage or Custom Vehicles
One of the major customer demographics for agreed value car insurance is composed of people who own vintage or custom vehicles. In both cases, stated value coverage may or may or may not avoid the scope of benefits that are desired. By contrast, agreed value coverage can be a perfect fit.
This approach allows you to take into consideration any changes and enhancements you’ve made to the vehicle. At the same time, vehicles that are now old enough to be considered vintage rather than old can continue to have adequate coverage. It’s one way to protect your investment in the vehicle.
Before you renew your vehicle coverage for another term, consider what agreed value insurance could do for you. After comparing your options, it may turn out to be just what you need.
