[Got the Bug]

Originally Posted by jhv48

Unfortunately, the "agreed on value" is only used to determine your value at the time of insuring it. That also determines your premiums.

The actual cash value of your car will be determined at the time of loss and will be based on the actual private seller value of your vehicle at the time of the loss. In other words, the actual cash value of your car will be its fair market selling price at the time of the loss. Generally, that is substantially less than what you paid for it.

Example: An $80,000 Mercedes is totalled after two years of ownership. This vehicle now sells used for $60,000. That is what the insurance company will pay for it. Not the original purchase price.

From the insurance company that I use.

Agreed Value Coverage-
(is coverage where the insured and the insurance company agrees on a value of the vehicle and at the time of the loss your vehicle can not be depreciated)