When you have purchased a custom or classic vehicle, it is generally not a good idea to purchase a traditional auto insurance policy, also known as a stated value policy. Stated value policies are usually not a smart move because they provide less coverage than you need when your vehicle is damaged, and they cost more. It is best to avoid stated value auto insurance Rhode Island.
With an appraisal from an independent appraiser, you will have the documentation you need to approach different insurance companies to get the right coverage for your vehicle, which is likely to be agreed value auto insurance.
Agreed value insurance ensures that you will be paid the entire amount that you insure the car for in case it is damaged. Stated value insurance does not necessarily guarantee that you will get the amount that the vehicle is insured for because these types of policies contain a clause that says that the insurance company can pay you whichever is less: the cash value of the vehicle or the insured amount.
If the insurance company is determining the market value of your car, you stand a good chance of not getting the money that your vehicle is actually worth. However, with agreed value insurance, you’ll get what you’re paying for. If your car is damaged, then you’ll receive the amount of money that it is insured for. This type of policy makes it easy for you to determine the amount you’ll get to repair or replace your vehicle in the event of an accident.
With an appraisal in-hand, you can shop for the best value in coverage for an agreed value policy. You’ll end up paying less with type of policy. Classic and custom vehicles are often put in garages to protect them from weather and theft. Additionally, they aren’t driven as often as regular cars, so there is less of a chance that they will get in an accident.
All this amounts to lower premiums for you, and the independent appraisal can help you get quotes from several companies to find the right policy for you.
Stated value auto insurance Rhode Island is not your best option. Call an experienced and professional appraiser to learn what your vehicle is worth and to get the best insurance for your money. You’ll be more confident in shopping around for the right policy with an appraisal. It takes the guesswork out of determining your vehicle’s value and protects your investment.