Insurance Car Owners Can Understand
What is it about car insurance that car owners don’t understand? When you purchase insurance for your car, you need to understand the cover your policy provides. Or do you? It shouldn’t come as a surprise that there are some things about insurance car owners don’t understand well.
There are a couple of ways to go about insuring a car, not third party insurance or liability insurance – those are other topics. Here, we’re talking about cover that protects the car itself, and in particular the cover that is in place to protect against loss of theft.
There are two significant types of cover, with the most comprehensive of the two generally being more expensive. When you buy insurance to protect your car you would like to do so knowing you won’t be in for an unpleasant surprise when you to submit a claim covering a major loss, such as the loss of a car.
If your policy states the cover is for the Market Value of the car, the amount of cover is going to become less as the car gets older. In fact, the market value of a new car usually drops significantly the moment it’s driven off the car lot. Your car is stolen, you paid $25,000 for it, and you find the market value is $18,500. Maybe you still owe $19,000. It does happen, but there’s nothing you can do when the policy is for Market Value.
Consider an Agreed Value policy. This value is negotiated at the time the policy is taken out. This value varies with time too, but you know what it is at any given time because it’s in writing. An Agreed Value policy is a better choice for many customers.
We can help direct you to a car insurance company that offers an Agreed Value policy. Get a free quote on a policy here. There’s no obligation.