When you have bought a classic or customized vehicle, it’s not smart to get a traditional auto insurance policy, which is also called stated value car insurance. These kinds of policies often provide less coverage than you need when your vehicle is damaged, and they are usually more expensive. So avoid getting the stated value car insurance Austin Texas offers when you get a classic vehicle.
With an appraisal from an independent appraiser, you will have the paperwork you need to get the right coverage for your vehicle. You should check out agreed value car insurance policies because they provide you the coverage that you need at the right price.
Agreed value car insurance is different than stated value insurance in a number of ways. One of the most important is that you will receive the amount of money that you and the insurance company agree the car is worth if it is totaled. With an appraisal, you’ll get the coverage that matches your car’s actual market value.
With a stated value policy, you’ll get the lesser of two amounts: the cash value of the vehicle or the policy’s stated value. That means that there is a good chance you won’t get the stated value of the car. If the insurance company appraises your car, you’ll end up with an appraiser who likely doesn’t have much experience appraising classic or customized vehicles and who doesn’t have access to comparable recent sales.
If the car is damaged, and you have a stated value policy, you’ll end up with a smaller settlement than if you have an agreed value policy. With an agreed value policy, you will get an amount based on what it’s worth, as verified by an independent appraiser.
When you have an appraisal, you can get the best value coverage in an agreed value policy. You’ll likely pay lower premiums with an agreed value policy as well. This is because you probably drive your classic or custom vehicle less often than your daily driver. Additionally, because your car is likely stored in a secure location, such as a garage, it’s less likely to be damaged, stolen, or vandalized.
Even the best stated value car insurance Austin Texas offers is probably not the best choice for your classic or custom vehicle. Call us for a professional appraisal so you can get the best agreed value policy. This will serve as the independent verification you need to get the right price and coverage for your car.