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Car Insurance Question (Agreed Value)


JanDaMan
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Maybe someone can help me understand why regular insurance policies (such as AAA, Farmers, etc.) don't offer Agreed Value policies. It seems only collector car insurance policies offer Agreed Value policies and I just can't understand why. For regular instance if a car is worth 250k such as through an annual appraisal or simply by both parties agreement then shouldn’t it be insured for 250k with dollar amount in the policy and then premiums paid for that value? In regular insurance you naturally pay higher premiums for a higher value car (so in reality a value is placed on the car and the only difference is that no value is stated in the regular type policy). The insurance company must have placed a value on it, otherwise how did they establish how much your annual policy would cost to protect it. Of course many things go into the cost of a policy, but the cars value must be somewhere in the equation no? So what's the big secret?  I know the obvious reason we all may say they don't offer Agreed Value policies and put that dollar in the policy is so that they can bend you over if the car is stolen etc. and essentially "then" peg your car at a dollar amount they feel is right and leave you to fight for the real value (which we all know ends up a useless battle with the insurance company or even in court with court costs, etc). So that's the actual reason, so they can bend you over later? There must be more reason to it that that.
 

 


 

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