When most people think about auto insurance, they focus on having enough coverage to meet the standards that apply in the places where they live. That’s great when you’re talking about the car or truck that will get you to and from work each day. In most cases, you’ll drive those vehicles for several years and then use them for trade-ins on new ones.
What if you have a vehicle that you only use once in a great while and that you plan on keeping from now on?
You Own a Classic or Antique Vehicle
While it may be stretching things to call yourself a collector, the fact is that you do own one classic or antique vehicle. The plan is to keep it and possibly pass it on to one of the kids at some point. It’s not just a mode of transportation to you; it’s an investment and a way to have a little fun now and then.
This type of vehicle definitely needs agreed value coverage. Doing so will ensure that if something does happen while you’ve driving the vehicle, or if the vehicle is stolen, you can get a payout that equals the agreed value. The only exception would be if the vehicle can be repaired; in that scenario, the policy would likely cover the repairs using original manufacturer parts.
Your Automobile Has Some Modifications
Your car or truck may not be considered a classic yet and it’s years from being an antique, but there is something unique about. That’s because you’ve made modifications that help improve performance or otherwise enhance the vehicle. Unfortunately, those modifications may increase the market value, but they don’t do anything for the cash value.
Opting for agreed value coverage makes it easier to lock in a figure that’s close to the market value of your modified vehicle. If it ends up being totaled, you don’t have to worry about receiving nothing more than the book value. Instead, you get the amount that’s set in the terms of the policy. That will go a long way in providing reasonable compensation for the loss.
You Want the Best Scope of Coverage Possible
There’s no doubt that agreed value car insurance provides maximum protection in the event that the car is a total loss for some reason. In fact, policies of this type ensure that you get that agreed value in the event that the car is totaled or is stolen and not recovered. There will be a simple provision within the policy terms and conditions to affirm this.
While owners usually hope they never have to file claims, it’s good to know this level of protection is there in case it’s needed. See this as more than a way to ensure you get a reasonable claim amount; think of it as a way to have more peace of mind if the unexpected happens.
You Want to Avoid the Pitfalls of Depreciation
Depreciation definitely has an impact if you go with the typical types of auto insurance protection. Depreciation as well as age and general condition will have some impact on what happens after an accident or the theft of your vehicle. While the offer you receive will be in line with the book value, it may or may not be enough to fully compensate you for the loss.
The thing about agreed value coverage is that depreciation doesn’t enter into the picture. In the event of a theft or a total loss, you do get the value named in the policy. Nothing could be more straightforward.
If you own vehicles that are in certain classes, do consider the idea of agreed value coverage. Talk with a professional about how to arrive at an appropriate figure and what the cost to you would be. This type of insurance protection could turn out to be just what you need.