How Does Best Agreed Car Insurance Differ From Other Insurance Policies
Every car owner in the US must insure their precious valuable. However, there are different types of insurance. This leaves car owners spoilt for choice on the right one to choose. One of the options to go for is agreed value car insurance. So how do you know the best agreed value car insurance Medford Oregon to go for? There are many indicators that can guide you in the right direction. Prior to this, you need to understand, what is agreed value insurance policy?
Agreed value car insurance policies have a maximum payout agreed upon by the individual buying the policy and the insurance company. In the case of damage or an accident, your claim cannot exceed the fixed amount. Agreed value insurance is a great option for classic cars and other expensive car models. This policy option offers an extra layer of protection. Unlike other policies where you get compensated based on the current market value of your car as at the time of the damage or accident resulting in lower payout, agreed value car insurance does not take that into account. Depreciation and the age of the car do not affect your payout.
It is however important to know that the extra protection your car gets doesn’t come cheap. The best agreed value car insurance Medford Oregon is typically higher than other types of insurance policies. To arrive at an agreed value, you will need the services of an expert to appraise the car before purchasing coverage. However, some insurance companies already have a set value for certain vehicles, hence no need for an appraisal service. If otherwise, the insurer can decide to appraise the vehicle using a renowned car appraisal company.
Agreed value car insurance is ideal for cars that do not have a common set value. A fine example is a classic or collector car. However, there are some factors that determine whether or not you should opt for agreed value car insurance. These include:
- Pricing: It is hard to determine the traditional value of the vehicle
- Repairs: The availability of a specialized auto technician who deals with such kinds of cars will also be considered. In the event of damage, you will need a trusted hand to fix and repair the vehicle to perfect condition.
- Wear and Tear: The longer you use a car, the more it depreciates, all thanks to wear and tear. But there are some rare vehicles that hardly depreciate no matter their age and in extreme cases, some increase in value over time.
How Does Insurance Company Arrive At the Cost Of An Agreed Value Policy?
There are many factors that determine the amount an insurance company will charge other than driver characteristics and vehicle make and model. Some of the factors that most insurance look out for include
- Mileage: You are not allowed to drive beyond an agreed total mileage annually. And if you drive fewer miles, your insurer might reduce the cost.
- Usage: How often do you use the car? A vehicle used for daily commute may cost higher than one only driven for pleasure. The more you use the higher the cost of a policy.
- Storage: Where you store your car matters a lot? A car parked in a secure garage gives it added protection from them, thus lowering your rates.
Remember, each insurance company has its own terms and conditions.
