Quote:
Originally Posted by id10t
Have a "stated value" policy thru state farm for the 356... cheap, no limits on driving, there is an agreed value of the car if it were to be totaled...
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Although its been said before, just for the record, "Stated Value" and "Agreed Value"are two different valuations.
Stated Value Policies:
Stated value coverage pays the cost of repair to the car or the stated value of the car, whichever is less, at the time that a claim is filed. There are a number of problems with this type of policy:
• The stated value is actually used only to determine the premium level. The higher the stated value, the higher the premium.
• In the event of a claim, the language of the contract allows the insurer to set an actual cash value instead of paying the stated amount as the insured party was given to believe.
Essentially, the company accepts the owner's stated value at the time the policy is issued, but does not issue any formal agreement with that value in the event of a claim. This gives them considerable leeway in honoring the benefits of the coverage. It's a rule of thumb in insurance that the company will always pay the least amount possible.
Agreed Value Policies:
Agreed value guarantees a set amount of coverage agreed upon at the time the policy was issued and is generally accepted as the best position for the owners of classics, unique, or highly modified vehicles. It carries a number of advantages:
• Allows the driver to secure and present a professional appraisal of the vehicle that they accept as a valid representation of its worth.
• Unlike standard insurance, the value of your car does not depreciate over the life of the policy.
• Is the only type of coverage that guarantees the owners will be paid in full in the event of a loss.
If buying collector or limited use coverage, make sure you have Agreed Value.
Tim