How Do You Calculate "Agreed Value?"
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Junior User
Joined: Apr 2010
Posts: 93
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From: Daytona Beach, FL
How Do You Calculate "Agreed Value?"
What is the best way to calculate the Agreed Value for your auto insurance?
Do you use what it would cost to buy a comparable vehicle in today's market, or
Use what it would cost to build another comparable vehicle, or
Do you use what you have put into the vehicle?
All three options will produce a different number.
What if I set an Agreed Value at $50,000 on a truck that was worth $20,000. Should the truck then be stolen or destroyed, would the insurance company pay the $50,000 as that is what they "agreed" to?
Do you use what it would cost to buy a comparable vehicle in today's market, or
Use what it would cost to build another comparable vehicle, or
Do you use what you have put into the vehicle?
All three options will produce a different number.
What if I set an Agreed Value at $50,000 on a truck that was worth $20,000. Should the truck then be stolen or destroyed, would the insurance company pay the $50,000 as that is what they "agreed" to?
Hotshot
Joined: Oct 2009
Posts: 16,174
Likes: 4,781
From: Burbank, WA
The people you need to ask this question of is the insurance companies themselves. But typically, the agreed value is what the vehicle is insured "up" to. Meaning they are not going to write you a check for 50K if the rig is only worth, or can be replaced with a like-kind vehicle, for 20. They will also usually ask for some kind of documentation to substantiate your claim of value, such as an accredited appraisal, photos, etc. That keeps you from insuring a pile of parts for an outragous amount of money, then filing a claim for loss.
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383lightning
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Feb 6, 2013 12:13 PM
