Pelican Parts Forums - Gone but not forgotten

Quote:

Originally Posted by GH85Carrera (Post 3849293)

That is the big reason I have stated value coverage on my 911. If it is totaled I know just what my insurance company will pay me. Then they can go after the guilty party. Hopefully that will never happen. I would prefer my car to the cash.

Better get "agreed value". Stated value = :( come time to cash-in.

There are three basic types of coverage. Understanding the differences and selecting the best for your needs will play a very important role should there be the unforunate need to file a claim. They are:

* Actual Cash Value (ACV)
* Stated Value (SV)
* Agreed Value (AV)

Insurance companies will use one of these three different policy forms. These methods of determining the value of a loss for each is different, misunderstood, and frequently misrepresented by insurance agents.

Actual Cash Value: This is the typical type of coverage in a standard insurance policy and pays a “depreciated” value in the event of a claim. As the vehicle gets older, its value decreases. The insurance claims adjuster decides what the car was worth at the time of the loss. Disagreements can sometimes only be solved with litagation.

Stated Amount: This is the type of policy is often used for collector car policies and is frequently misunderstood. Many "Stated Amount" forms state the insurance company will pay the lesser of:

The Stated Amount
or
The cost to repair the covered auto not to exceed the “Stated Amount”
or
The “Actual Cash Value”

The “Stated Amount” only serves to set the maximum amount that will be paid. It does not guarantee you a settlement amount that reflects the value of the car when a loss occurs. The “Actual Cash Value” language allows the claims adjuster to settle your loss for an amount less than the “Stated Amount.” Sadly, most insurance agents are unaware of this detail. Most agents, unaware of the actual policy language, will insist if your collector car is stolen or totaled, you will receive the stated value. Wrong!

Agreed Value: This the type of coverage you should purchase. With this policy you are guaranteed in writing the amount you would acctually receive if you car is stolen or totaled. There should be no “Actual Cash Value” clause in the policy. The “Agreed Amount” policy should state that the insurance company will pay you the lesser of: The “Agreed Amount” or the cost to repair the car, not to exceed the “Agreed Amount”.

The “Agreed Amount” should be reviewed carefully with your agent before the policy is issued. Your agent and you must agree together upon the “Agreed Amount” before the policy is issued. The “Agreed Amount” should represent the true market value of the car at the time the policy is written. If the market value changes during the policy period, the “Agreed Amount” can be changed by endorsement. Before policy renewal each year the “Agreed Amount” should be changed, if necessary, to reflect current market value.

Most standard insurance companies do not offer an “Agreed Value” policy.