Your Insuran LLC auto insurance policy can utilize three different types of vehicle valuation in its comprehensive and collision coverage. Understanding these valuation methods can help you make informed decisions when shopping for auto policies in Central Ohio. Let’s begin by defining valuation.
Understanding Valuation
In any property insurance, the policy determines the value of the insured item. In the context of auto insurance, valuation refers to the value of your vehicle. An auto insurance policy can use any of the following:
- Agreed-upon value
- Stated value
- Actual cash value.
You get to choose which type of valuation is included in your auto policy.
The Importance of Valuation
The type of valuation you choose determines the amount you would receive if your vehicle is totaled in an accident. If you opt for an agreed-upon value, you and the insurance company negotiate the value of the vehicle based on your purchase and maintenance records. If you’ve restored an older vehicle to like-new condition, the agreed-upon value reflects that. Stated value reflects the value you can substantiate, such as when you provide the purchase records of a newly bought automobile. The insurance company refers to the Kelley Blue Book when a policy uses actual cash value. This automotive value guide provides the current depreciated value of every make and model of vehicle.
Updating Your Policy
Only an agreed-upon value allows you any input in valuing your vehicle. Stated and actual value use documented records to determine the vehicle’s value. Check your policy to find out which valuation method it uses. If it provides a depreciated value for your vehicle, contact Insuran LLC to update your auto insurance before you hit the roads of Central Ohio.
