Agreed Value
 

Insurance is a bit of a boring subject -- until something happens .... then not so boring. With the currently thread regarding 8k dealer offering for an 06 S w 110k.. Thought I would bring up the subject.

I had a house fire two years ago that took my 06 S w/60k and two others with it. Thankfully, everything was properly covered including my autos. When you have a total auto loss they pay you the tax ... with regular coverage it would have amounted to about 26k using Chubb's generous valuation method. With the agreed policy from new I was paid a bit over 44k for the car. The payout on the other two was about 12k and 15k over Chubb's book. So on the three cars I got an extra 45k.

I just settled the claim last month and I hope to start rebuilding shortly ... you can't believe the disruption and aggravation. Not having the extra on everything would have been a disaster. Just something to think about for those with a lot of "stuff' all at one location.

Interesting info. I'll have to check my policy. Basically better to have them in the garaged totaled than on the road if I understand correctly.

The "Agreed Value" -- is just that ... You and the insurance company agree on the value of the car before a loss. Without AV coverage the value will be determined when the loss occurs. Finding out how a particular insurance company will determine the value is near impossible. It is normally not a good surprise. AV is not "stated value" ... you do not want a SV policy.

The location or cause does not matter -- my homeowners policy had nothing to do with paying for the cars. The same payout value would have occurred had the car been destroyed in a typical road accident ... and they don't use the higher AV number to deterring when to "total" the car .. use the actually cash value.

I have quite a few friends with low mile like new Porsche's worth much less then they think.