When you have bought a classic or customized vehicle, it’s usually not smart to get a traditional auto insurance policy. This is also called stated value car insurance. These kinds of policies often provide less coverage than you need when your vehicle is damaged. Additionally, they are often more expensive.
When you get an appraisal from an independent appraiser, not from the insurance company, you’ll have the paperwork you need to get the right coverage for your vehicle, which is probably an agreed value auto insurance policy.
Agreed value insurance gives you the amount of money that you insure the car for in case it is damaged. That sounds like what insurance is supposed to do, right? Well, stated value car insurance doesn’t guarantee that you’ll get the same amount of money that you insure the car for because these policies have a clause that states that you can receive whichever is less: the cash value of the vehicle or the insured amount.
Should the insurance company determine how much your car is worth, it is not likely that you’ll actually get what your vehicle is actually worth. However, agreed value insurance gives you what you’re paying for. If the car is damaged, you’ll get what you insured it for. This kind of policy makes it simple to figure out the amount you’ll get to repair or replace your vehicle if it is damaged or totaled.
With an appraisal, you can shop for the best value coverage for an agreed value policy. You’ll probably pay less with this type of policy, too. Why? Well, you’ll probably drive your classic or custom vehicle less often than your daily drive. Also, your vehicle is more likely to be stored in a garage or other secure location. Your premiums will probably be significantly lower than they are for your everyday vehicle.
Stated value car insurance is probably not the best bet when you have purchased a classic or custom vehicle. Call us for a professional appraisal that you can use to get the best agreed value policy for your vehicle. This will serve as independent verification of the price you could get for the vehicle on the market today. We’ll go over your car thoroughly to determine an accurate market value for it so you can get the coverage you need at the right price.