When you need to secure a new auto insurance policy, there’s more than one approach to consider. One that may be right for you is to think about seeing what agreed value car insurance Winnetka CA has to offer. Also known as guaranteed value, this solution works well in a number of cases. Here are a few reasons why you would want to discuss this option with your insurance agent.
You Own a Vehicle That Could Not Be Easily Replaced
Maybe you have a classic or vintage vehicle that would be difficult to replace. With other forms of insurance coverage, the value assigned to the vehicle may be less than enough to replace a totaled car with one that’s similar in vintage, make, and model. That would leave you having to settle for something that’s not what you would really like or desire.
This type of issue is eliminated if you decide to go with agreed value. By making sure your coverage is in line with what it would cost to purchase a similar vehicle that’s more or less in the same pre-event state as your car or truck, there’s a good chance of being able to pay for the replacement using the insurance settlement.
Certainty Of What You Will Receive if the Car is Totaled or Stolen
With other types of car insurance, there’s some uncertainty of what sort of offer you would receive in the event the vehicle is totaled. Providers may use similar methods, but they can vary somewhat in the way the formulas work. You may end up with an offer to total that seems good to you, or it could seem too low.
With agreed value coverage, there’s no guesswork about what will happen. The figure is in effect for the entire term. Even if something happens days before the current term is set to expire, the scope of your coverage remains in place. That can make moving on from the loss a lot easier.
More Control Over Your Premiums
Here’s an aspect of agreed value car insurance Winnetka CA that is often overlooked. Since the insurance provider and you come to terms on the insured value of the vehicle, there’s plenty of room for you to control the amount of the premiums. It all depends on what sort of agreed value you want to include in the policy terms and conditions.
Maybe you want to go with a figure that’s slightly higher than the appraised market value. If so, you can choose to pay a higher premium. When you’re willing to settle for less than that value, opt for coverage that’s a little lower and have a reduced premium to pay. Remember that you can always revisit that insured value when it’s time to renew the policy.
And Negotiating the Impact of Auto Depreciation
Should your vehicle be involved in an accident, many other forms of auto insurance will make decisions based on the latest figures related to the car’s depreciation. That’s not true with agreed value. All decision about repairs or an offer to total the vehicle are based on the figure named in the policy terms and conditions. Nothing will change until it’s time to renew the policy for another term.
Just as you have the ability to seek a revised insured value for a new term, the same is true for the provider. At that juncture, the provider may indicate seek a lower agreed value based on current depreciation for the make and model. There’s the chance you can overcome that with the aid of an appraisal by a certified service. Even if your current provider is not open to the amount you wish to pursue, a competitor may be happy to work with you.
While agreed value auto coverage isn’t for everyone, it may be exactly what you need. Explore this option in more detail and see what you think. This approach may turn out to be helpful in the event your car is ever involved in an accident.