Agreed Value Appraisal
Who Needs an Agreed Value Appraisal?
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Classic Vehicle Owners
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Custom/Modified Vehicles
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Custom/Modified/Lifted Trucks
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Custom Motorcycles
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High Dollar Custom Builds & Restorations
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Watercraft
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RV's & ATV's & Powersports
What is an Agreed Value?
An Agreed Value Appraisal is your extra bit of insurance to make sure you are compensated if your Classic/Collectible/Modified car or truck or motorcycle falls victim to a Total Loss. There are 3 basic types of Automotive Insurance Policies that dictate how you get compensated in the event of a Total Loss.
Let’s look at them:
ACV (Actual Cash Value)
This is the most common type of Insurance Policy one would have on their vehicle. It basically leaves the dollar amount up to the Insurance Company you would receive in compensation in the event of a Total Loss. You can dispute this amount with a PRIOR TO LOSS APPRAISAL by exercising your Appraisal Clause but can still be a headache. Generally, your premiums will be lower with this type of Policy, but you could stand to lose a LOT of money if your car is highly modified or a classic/collectible. You are basically leaving it up to the insurance company to decide what your “SHOW-WINNING” 1970 Chevrolet C10 Short Box is worth.
Stated Value Policy
These types of policies are very common in the Collector/Classic Car policies issued by Insurance Companies. This can be an OK policy if everything goes YOUR WAY. But let’s face it, we’re dealing with Big Insurance. They are not in the business of just handing out large checks. These policies most likely state Big Insurance will pay a “STATED AMOUNT or ACTUAL CASH VALUE” that is determined by… Guess Who??? That’s right… Big Insurance. Keep in mind, they are not under any sort of obligation to pay the Stated Amount
Agreed Value Policy
This type of policy is by far the best course of action for anyone who has a Collector, Classic, or highly modified Car, Bike, or Truck. This policy is a dollar amount that is “Agreed” upon between you and your insurance company. Let’s look at that same “Show-Winning” 1970 Chevrolet C10 Short Box that we discussed earlier. Do you think the insurance company is going to consider the $20,000 LS6 Engine, the $7,000 4L60 Trans, the lowering kit, the Air Ride, etc….?? Are you going to leave the value of your $25K paint and fit and finish up to some Adjuster who works for Big Insurance? Do they even KNOW what they are looking at?? Don’t gamble with your investment!!
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