Quote:
Originally Posted by im4u2nvss
I use state farm. Had to get appraisal then we used that number as our "agreed value". In the event of a total loss, they will pay out the agreed amount.
|
That is not true. You agreed to a number they use to set the cost of the insurance. It is NOT a guaranteed payout though, they can still look at comps and adjust accordingly. Look in your policy for the words "actual cash value".
State Farm doesn't have a true agreed value policy, it is stated value. Stated Value is coverage that reflects an amount that is “stated” at the onset of the policy. You tell your insurer what your car is worth (with proper documentation) and it is insured for that amount. The caveat here, however, is that the insurance company can choose to pay you either the Stated Value or the Actual Cash Value, whichever is less.
Alternatively, Agreed Value, coverage primarily offered by specialty insurers, is based on the proven value of your car as determined by you and the insurance company, according to appraisals, photos, or other relevant documentation. With Agreed Value coverage, the insurance company will guarantee that they will pay this agreed-upon value in the event of a covered total loss.