In a message dated 7/27/99 7:07:25 PM Central Daylight Time,
DonJQueen@aol.com writes:
<< Be cautious about the use of terms like "agreed" value and "stated" value.
Technically "stated value" is just as it sounds. You insure the car for
$10,000 and if it's stolen or totaled, you'll get $10,000 less deductible.
"Agreed" value can mean that the policy premium or price is based on that
value. But,in the event of the loss, the insurance company will only pay "up
to " that agreed amount, but less if the value of the car has dropped or the
adjuster disagrees.
The problem is that the terms are used interchangeably by agents who have no
idea what they are selling to you. >>
Like the agents you refer to you have your terms turned around. Stated Value
is what the Insurance Company basis the cost of the policy on. It doesn't
mean that is what they will pay you if the car is totaled. Agreed value is
what you and the Insurance Co. agree the car is worth and will pay that
amount if the car is totaled.
Ron Mitchell
SEMAHC
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