Specialty and everyday insurance policies differ greatly when it comes to vehicle value and how the policyholder is compensated in the event of a loss. There are three ways auto insurance pays out claims:
- Actual Cash Value: Insurance adjuster tells you what it is worth based on used car values (not classic car values)
- Stated Value: Client sets value; insurer only has to pay up to the Stated Value and is allowed to pay the lesser
- Agreed Value or Guaranteed Value: Both parties agree on a value and policyholder is paid out at that value in the event of a covered total loss — NO depreciation!
- Value determined up front and guaranteed through policy term
- No depreciation on partial loss
- Full value paid for total loss, less any deductibles
- If $0 deductible is chosen, no out-of-pocket expense to the policyholder
With Hagerty’s Guaranteed Value policy, your client will have peace of mind knowing that their baby Is protected correctly, and you will have peace of mind knowing you have done the right thing. This will create loyalty, retention and word of mouth, as your name is mentioned to other collectors!