Case study: Up in flames
John had spent nearly 15 years restoring a classic Mercedes 2026 S, which he kept parked in an exterior shed of his property. John had the car insured under agreed value coverage for $90,000. Late one evening, John awoke to see the garage up in flames from his bedroom window. By the time local firefighters had arrived, all that was left of the garage and car were mounds of ash and scrap metal.
The insurance company declared the vehicle to be a total loss. As the vehicle is outside of the two year replacement , John is paid the agreed value of $90,000.
What if I have an agreed value policy on my motor insurance and the car suffered a loss (not big but some) can the insurer cancel the policy or charge a new premium?
Hello Vero,
Thank you for your comment.
According to car insurers, an agreed value car insurance involves you, the car owner, and the insurer agreeing on a specific value for the insured vehicle when the policy is taken out.
In the event of a claim being made as a result of the car being declared a total loss, your insurance company will reimburse you the agreed amount. Hence, your insurer will pay you and you may renew your coverage. I suggest that you check this with your insurer.
It’s important that you read the eligibility criteria, features and details of the policy, as well as the relevant Product Disclosure Statement PDS/T&C’s of the policy before making a decision and consider whether the product is right for you.
Regards,
Jhezelyn