There are some who consider their cars to be their prized possession. This might be due to sentiments, its cost or some other factors. If you are among these ones, you might want to have car insured against any and everything that might bring harm to your precious. The problem however is that insurance companies operate based on market value insurance and thus for enthusiast who believe that their car is worth more, they might be looking to explore other options. Hence the need for an agreed value car insurance Orange County.
Agreed Value Car Insurance
Agreed value car insurance Orange County is an amount that you and your insurance company have set aside to have your car insured for. As stated earlier, it is an option that people who think that their car is worth more than the current market value subscribed to. This option provides the car owner with the opportunity to insure their car at a higher amount. This means added security for the car owner in the event that an accident occurs. The amount payable for indemnification in such cases would be enough for the car owner to either carry out all necessary repairs or pay out the remaining of a car loan.
Agreed value car insurance however works in the other way. In other words, a car owner and his insurance company can agree to have a car insured for less that it current market value.
When is it Best to Spring for an Agreed Value Insurance?
This sort of insurances is best suited for vintage and classic cars that have a current market value that is considered too low.
If you have made serious modifications to your car that might have significantly increased its market value, then it is considered shrewd that you get higher insurance premiums on it.
The Benefits of Having an Agreed Value Car Insurance
This sort of insurance provides you with an opportunity to cover all sorts of vehicles, be it vintage, import or modified, and at an amount that you consider right as well.
If you are working on a budget and are looking to save money on premiums, then you could opt for an agreed insurance price that is lower than the current market value of the car you are insuring.
Although subject to reviews once a year, the agreed upon insurance amount is fixed and not subject to depreciation or change.
Disadvantages
It is said that anything with advantages would have disadvantages and this sort of insurance isn’t an exception.
Firstly, agreed upon insurance are more expensive than the market value insurance. It is also not a package that all insurance agencies provide. Besides these, there is also the possibility that you are paying too much money for too little service. This is a case of over insurance, and sorry, but there is no indemnification for that.
Having weighed the pros and cons of an agreed value insurance however, it is advised that you consider getting one if your car is really worth it.
