It is imperative as a car owner to have insurance on your car. It saves you a lot of stress and hassle when unforeseen contingencies come up, but the problem sometimes is not really the insurance, for some it is merely knowing the type of insurance that fits their lifestyle. There are various types of insurance for car owners but the focus today would be on getting an agreed value car insurance in Medford Oregon.
Before we move further into the discussion, it is important for you to know the meaning of an agreed value car insurance as opposed to the market value car insurance.
What is an agreed value car insurance?
An agreed value car insurance simply refers to the type of insurance where the consumer and the insurer agree on a value for a car at the time it was bought, but if you decide to have your car insured and it is not new, you can negotiate with your insurer on the value based on a certain number of factors. With this type of insurance, it is possible for you to be get a reasonable amount of money back if you face a total loss of your car. Having a total loss of your car without this type of insurance would only mean the maximum payout you would get will be the car’s value after a resale. The other option to agreed value car insurance is market value car insurance.
What is market value car insurance?
Market value insurance is the term used by insurance companies to describe the type of insurance where you can only be given the amount your car is worth in the market at its current state. It should not be mistaken for a trade-in value or the value a collector is willing to pay for your car (which might be higher or lesser).
Features of an Agreed Value Car Insurance
For an agreed value insurance, the value you get in return is dependent on what was agreed before ruling out or renewing the policy. You have control over this type of insurance and it is listed on your certificate. You can tweak the value when you want to renew your policy.
For a market value insurance, the value you get for the car only comes at the point you lay a claim. It would be calculated according to different metrics such as age, model, condition and other things. You have little control over this type of insurance and it is not listed on your certificate.
For most custom cars that you can’t just replace when something happens, you would need a proper coverage for them so that you can have the worth of your custom car intact. The agreed value car insurance is an excellent type of insurance that can be used to cover unique custom cars at any point in time.