Quote:
Originally Posted by DragonRider1
Very true which is why I used Agreed Price. When it comes to these situations you will have a bit of leeway when negotiating the final settlement with an insurance company. They are not a 'take it or leave it' situation as many would suggest. If you go back and re-read what I had up there you would see where I got Agreed Price from. It's generally how it's done by 95% of the carriers out there. Also, it's almost never good to accept their first offer unless you already feel it's a very strong offer. There is a % built into reserve and many (if not most) insurance companies will bonus the adjusters based on how much they save the companies. Just keep that in mind.  |
I think that you misunderstood me (or perhaps I misunderstood you). Agreed Value is a coverage endorsement, not a formula for determining loss settlement. Agreed Value is an endorsement that states before the time of the loss (ie, at policy inception) what loss settlement will be. In other words, you and the company agree at the time the policy is written that settlement will be $X in the event of a total loss; the 'negotiating' is done before you've even had the loss. Replacement Cost is an endorsement stating that the company will pay what it costs to get you a comparable new car (ie, new for old). See where I'm coming from? With an Actual Cash Value settlement, you may not agree with what is being offered since there may be several sources that can be used to obtain that value. That's where you may be able negotiate a more preferential settlement as you have mentioned; however, that is not what is meant by the term Agreed Value; and Agreed Value and Replacement Cost are not interchangeable terms