Originally Posted by aftermath
An agreed upon value policy still requires that you "agree" to the value of the trailer. Actual Cash Value policies can be the same. The majority of folks out there will take the company's first offer and be done with it. If you challenge them, you end up trying to "agree" upon a workable value.
I might be missing something here but that it the way I think it works.
missing something here. With an Agreed Value policy, you and the insurance company agreed in advance
on the value of the trailer, and if it's totaled, that's what they pay.
It's like a life insurance policy. Suppose you have a $100,000 life insurance policy. If you die, does the company negotiate with the beneficiary over how much your life was actually worth (allowing for depreciation, etc.
) or how much it will cost to replace you? No, they just write a check for $100,000.
This can cut both ways. A long time ago, my stepdad had Agreed Value coverage on a vintage sports car that he owned. One day he totaled it, and the company paid the agreed value. Unfortunately between the time he had insured it and the time it was wrecked, its value had gone up a lot, and he got significantly less than the actual market value of the car.
So if you have Agreed Value insurance it might pay to follow the market and get your vehicle re-appraised for more coverage it the value goes up significantly.