There’s more than one type of auto insurance that consumers can secure. One that may be right for you is sometimes called guaranteed or agreed value car insurance. Basically, this type of coverage identified a specific amount that the provider will pay if the covered vehicle is damaged or lost. Who would want to consider this type of coverage? Here are some examples.
Avid Auto Collectors
There are people who own several vehicles as parts of collections. These are not intended for use in the same manner as most people utilize their cars or trucks. Rather than being something to use going to and from work every day, the collector uses the collectibles for special occasions that tend to be localized and free of the usual traffic and potential risks found on major highways.
Given the infrequency of use, it makes sense to look at this type of coverage. In the unlikely event that a collectible vehicle is stolen or damaged, it’s nice to know what sort of compensation would be forthcoming.
Anyone Who Owns a Classic Vehicle
A classic vehicle is considered one type of collector vehicle. While definitions vary, most would say that a classic car would be at least a couple of decades old and have some type of historical interest. The make and model is usually viewed as worthy of preservation rather than being ready for the scrap heap.
The thing is that the book value of the vehicle may or may not be that great. Opting for agreed value coverage makes it possible to be adequately protected in the event something unfortunate takes place. In terms of making it easier to replace your classic vehicle, the money from the insurance company is likely to be enough to find and buy one that’s the same or at least a vehicle with similar historical interest.
Or an Antique Vehicle
Antique vehicles are different from classic vehicles, although both can be considered collectibles. In order for an automobile to be considered an antique, most authorities would insist that it must be at least 25 years old. Typically, those authorities are likely to state that the vehicle must be 45 years or older. It must also have strong historical value and interest. Further, the vehicle in question is often required to include only original parts.
Given the more stringent requirements for being classed as an antique, it’s no surprise that this type of vehicle is often secured as an investment. Should something happen to it, the fact that it’s covered by agreed value car insurance increases the odds of being able to recoup the original investment, part of the expense of upkeep, and essentially protect the interests of the owner.
Owners of Modified Vehicles
Modified vehicles are automobiles that have been altered or changed in some way that sets it apart from the original design. Features that help to improve engine performance, acceleration, improve fuel mileage, or even streamline the body in some way would all be considered as modified.
Opting for agreed value coverage is a good move if you own a modified vehicle. It’s possible to take those modifications into consideration and settle on a value that is agreeable to the insurance provider and the vehicle owner. Should something happen to the vehicle, the payout provided by the insurance company will likely be more than the book value.
While not for everyone, it does pay to look into what agreed value coverage has to offer. An insurance agent can make recommendations based on the make, model, and condition of your car or truck. Compare your options and go with the one that you think provides the type of protection that’s best for you.
