Stated value auto insurance is a commonly misunderstood insurance coverage. It plays a significant role but is often misused. Basically, stated value auto insurance Orange County CA is often used on classic cars insured through a wide range of insurance companies. So if you’re considering insuring your classic car, you have to know what you’re bargaining for.
Car appraisal is basically about a total loss. How much will your insurance pay when you file for such a claim? Many think the stated value and agreed value are the same, but the truth is they are both distinct in terms of purpose.
Stated value determines how your insurer rates your vehicle, it does not necessarily determine how much compensation you’ll get from your insurer in the event of a total loss. These companies word the coverage allowing them to pay either the stated value amount or the actual cash value, depending on the lowest rate.
Should You Buy It?
Stated value is coverage for car owners who own a vehicle which has a much higher value than what they want to insure it for. for instance, it may cost a lot to insure an appraised classic car valued at over 600k. In this case, you can opt for a stated value auto insurance Orange County CA worth 60k. This way, you can give your car the protection it needs in case of minor damage. It is not as if you paid 600k for the car and 60k is a reasonable value. In fact, your claims adjuster will conduct a comparison between the stated value and actual cost value to determine the amount you’re entitled in a total loss.
State value auto insurance Orange County CA has a lot of benefits. First, it is cost effective. And when compared to other types of insurance coverage, it is a lot cheaper. Second, it can be added to your regular car insurance policy.
Essentially, stated value auto insurance Orange County CA is to reduce your coverage. Do not forget this important point especially if you’re looking to insure your classic car. Prior to buying stated value auto insurance Orange County CA, you should speak to an experienced and knowledgeable insurance agent to determine which coverage is just right for you.