In a message dated 7/27/99 6:52:17 PM Central Daylight Time,
DonJQueen@aol.com writes:
<< Technically "stated value" is just as it sounds. You insure the car for
$10,000 and if it's stolen or totaled, you'll get $10,000 less deductible. >>
"Stated value" is just as it sounds. The car owner states what he or she
thinks the value of the car is and pays a premium based on that amount. If
there is a loss, the car owner must still prove the value of his car and the
insurance company will pay the proved amount, up to the stated amount, less
deductible.
<<"Agreed" value can mean that the policy premium or price is based on that
value. But,in the event of the loss, the insurance company will only pay "up
to " that agreed amount, but less if the value of the car has dropped or the
adjuster disagrees. >>
"Agreed Value" also means what it says. The insurance company and the car
owner agree beforehand about the value. Usually, the insurance company will
require an appraisal, but sometimes they will accept photos. If there is a
loss, the insurance company has already committed to pay the agreed value.
This is a much better policy for the car owner because there are no surprises
after the loss.
"Agreed value" policies usually carry an inflation clause so you don't have
worry about coverage each year. "Stated value" policies often decrease each
year, based on the assumption the car deteriorates after the car owner has
stated the value.
Both Parish and Heacock sell agreed value policies and provide any type of
coverage you could desire (on track, trailer, at track, etc.)
As a lawyer, I do a considerable amount of insurance coverage dispute work,
and I see way too much litigation over misunderstandings like the one Don
has. My advice would be to go to a pro who specializes in these types of
risks. Parish Insurance and Heacock Insurance are the top pros in vintage
race and specialty car coverage.
David Whiteside
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