In a message dated 5/31/00 2:06:36 PM, type79@ix.netcom.com writes:
<< Could you tell me, what is replacement value? I am actually asking what is
it as
defined in the policy.
Usually, the common insurance terms used are either "Stated Amount" or "Agreed
Value" which are not the same coverage. >>
Jay,
You are right. Years ago replacement value meant replacing your totaled car
with an equivalent car. I still use the term, much to Annice's cringe, she
is better versed in matters of insurance. I just know what I want. <BG> I
think it also proved to be impractical in that what the customer thought was
an equivalent replacement and what the insurance company thought were often
far apart.
ACSC uses the terms "Actual Cash Value" or "Limit of Liability." I do not
know off hand which one is based on Blue Book Value. We use the other one in
which we have placed a dollar value on the car. If the car is totaled or
stolen and not recoverd then the insurance company pays that amount, there is
no discussion or negotiating. This type of coverage generally cost a little
more but is worth it for us.
Bob and Annice
1960 Sprite (Mk IV indiguise)
1967 Sprite Mk III (in progress)
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