What does the Florida insurance term “Agreed Value” mean and why is it important for classic car owners?
In the classic car insurance world, the difference between “agreed value” and “stated value” can mean everything.
An agreed value police guarantees the policy will pay a previously agreed upon price in the event of a total vehicle loss – with no depreciation, negotiation or delay.
A stated value policy, sometimes called a maximum limit of liability policy does not promise to pay an agreed up amount, rather, in the event of a total loss, the insurer has the right to pay the lesser of the vehicle’s depreciated actual cash value (AVC) or its replacement cost. This means, you may end up fighting with your insurance company to get paid a fair amount for the value of your car with no guarantee you will get what it is actually worth.
Be sure to know what you are buying when you purchase you classic car insurance policy. Carpenter Insurance has classic car insurance experts on staff and we only work with the most reputable classic car insurance carriers to ensure that we get you the right coverage for your situation at the best possible price. Call us today at (866) 939-7777 to get speak with one our classic car insurance experts and get a personalized classic car insurance quote.