Anyone who has been shopping for a car recently knows that due to limited availability of new vehicles, consumers are paying far above sticker price to get in that ride. Then, you may have to wait months to take delivery of your new vehicle. If you can’t wait for that new car, used car prices are stuck in high gear too.
Most Insurance companies use what is called “Actual Cash Value” (ACV) to determine the amount to be paid to replace your vehicle. If the car is stolen or damaged in an accident, the ACV may be considerably lower than what you paid for your vehicle, leaving you to layout extra cash to replace the vehicle.
Owners of high value vehicles should consider purchasing an auto policy with an Agreed Value.
What this means is that in the event of a loss to the vehicle, the insurance carrier will pay the full insured amount of the vehicle with no depreciation.
An agreed Value auto policy is a must for any owner of a luxury, exotic or high-performance vehicle. This will ensure you will be fully reimbursed for your car and purchase a suitable replacement.
If you own a high value vehicle or are thinking about purchasing one, please contact us. We would be happy to walk you through the insurance process and make sure you have the proper coverage. As an independent agency, we can provide quotes from multiple carriers to ensure you are getting the best available price.
John R. Russo
President, KJE Insurance Services