Let me jump in here with a question, Agreed (Stated) Value vs Actual Cash Value.
Soon I will have a Cobra to insure (
) and I have talked with my agent and this is my understanding as to two different ways to approach insuring a car like a replica Cobra.
- If your policy has an Agreed (or Stated) value, and there is a total loss, the settlement is set at the Agreed value. Premiums are based on that amount and there are restrictions as to how the car can be used ... covered are car club events, car shows, pleasure drives and sometimes there are annual mileage restrictions. Not covered for example is use as a daily driver or commuting to and from work and there may be annual milage restrictions.
- If your policy is Actual Cash Value, and if there is a loss, the adjustor will use blue book, NADA guides or car ads to set the value of the car. However, there are no restrictions on how the car is used, in terms of miles driven or commuting to work for example.
Does this sound correct? Are there any other options?