Jay, et al
I should know better, especially after 16 years in various P&C companies
(before (I went straight!). Basically what you are doing with stated value is
to open the door to negotiations and to provide a maximum amount the insurance
company will pay. When you buy regular insurance on your everyday car, "Comp
& Collision" is effectively a stated value-they will give you what your car is
worth (this of course depends on the quality of your insurance company....
various "discount" outfits will offer well below market and often try to force
you to accept the wholesale value of your car, not it's replacement cost).
However, on a modern car, the value or "worth" is easily obtained. On an
antique this can prove to be very difficult.
What stated value does is to give the insurance company an idea of what
premium to charge for the coverage and a maximum amount the insurance company
would be liable for.
Since neither of my cars is worth a whole lot, I have a minimum stated value.
I am far more concerned with liability. On that I have the same limits as on
my regular cars.
Jan Eyerman
1962 Hillman Minx Series IIIC Convertible
1973 Hillman Avenger DL
(neither of which is worth very much in dollars)
Jay_Laifman@countrywide.com wrote:
I have to clarify something here. Stated value is NOT what was suggested
by Jan and Jim. Sorry to be so blunt here. But, I don't want folks out
there to have insurance that they do not have. "Agreed value" is as
stated. Up front the insured and the insurance company "agree" to the
value and the insurance covers that amount, no questions. Of course you
only get to an agreed value with an appraisal or other means. However
stated value is not simply you state the value, they cover it at that
value. Nope. Yes, you state the value, they charge you premiums for that
value. But, if you read yoru insurance contract you will see that they
still have the ability to pay based upon the value determined at the time
of the accident - which has no bearing on the "stated value."
So, please, if you think you are safe with "stated value," please read you
policy and realize that you are not.
|