You’re in the market for insurance that’s appropriate for your classic vehicle. One of the options that you hear is worth considering is stated value car insurance Winnetka CA. Would this be a good fit for you? The only way to know for sure is to learn more about this option. Here are four facts that will help you get started.
Stated Value Equals The Amount That You Would Require From a Buyer
What is the stated value of a vehicle? Simply put, it’s the market value that you would use to set the price if you wanted to sell the car. That figure may or may not agree with what you think the car is worth.
The best way to determine the stated value that you want to use for the vehicle is to have it evaluated by a certified appraiser. That professional will take into account factors above and beyond the make and model. The general condition plus the mileage on the engine, and any customization you’ve done will also factor into the response. Once you have that figure, you have a starting point for discussions with an insurance agent.
Stated Value Coverage is Not the Same as Agreed Value Coverage
One thing that you will quickly learn is that stated value insurance is not another name for agreed value insurance. They are two separate types of auto coverage. While both are used for classic and customized vehicles, what they offer is a little different.
Your agent can explain how the two options compare and contrast in terms of the scope of coverage. That discussion will help you have a better idea of what you would get by opting for stated value rather than agreed value.
You May or May Not Get the Stated Value If the Car is Totaled
One of the facts you will learn from that conversation is that stated value coverage does not mean you will receive the full stated value if the car is totaled in a covered event. There is the possibility that you will, but it’s not a sure thing. In fact, this is a point that separates stated value from agreed value coverage.
A great deal depends on the condition and market value of the car prior to the covered event. This is an area where the appraiser can make a difference. If the appraisal results indicate that the car’s worth just prior to the accident is equal to or exceeds the stated value in the policy, you are more likely to receive stated amount. When some depreciation or other loss of market value has occurred, you will receive the lesser figure between the figure in your policy for stated value car insurance Winnetka CA or the appraisal.
Stated Value Coverage Does Tend to Be More Affordable
There are upsides to opting for stated value auto insurance. One of them is the cost. When compared to the expense associated with agreed value coverage, stated value will mean lower premiums. If you consider the scope of the coverage to be enough for right now, there’s no reason to go with any other type of insurance policy.
It’s up to you. Look closely at the options for covering your classic vehicle. Take the time to run through several scenarios and see what the policy terms and conditions would do for you. If you’re happy with those projections and the premium is one that fits into your budget with ease, there’s no need to look further.