Community Forums

LOG · 11-02-2015, 03:05 PM

Agreed value has a different definition according to the insurance company. With Allied insurance, for a total loss, the amount of payment is the agreed value on the declarations page less the deductible on the declarations page.
For National General, for a total loss, the amount of payment is the lessor of the actual cash value at the time of loss or the agreed valve on the policy. If you then purchase replacement rv within 180 days, the policy will pay the difference between the amount paid at the loss and the purchase price of the replacement rv, up to the total amount of the agreed value. If there is not a replacement rv, the total amount of payment will be the lessor the actual cash value at the time of loss or the agreed value on the policy.
if you have an agreed value policy, you need to read the actual policy to see what coverage you have. We found this out after we switched from Allied and went with National General. We found out the difference when we received and read the actual policy.
The insurance agent never told us that there was a difference in agreed value policies.

Mr_D · 11-02-2015, 03:09 PM

We have Allied and they used the sale price rather than the NADA book for our insurance. The price we paid is about $50,000 less than the NADA average. I guess we could go back and have it redone but it would raise our rates too.

Gary RVRoamer · 11-03-2015, 06:27 AM

"Agreed value" is different than "total loss replacement". The former gets you a guaranteed $ amount for the loss, while the latter just promises an equivalent replacement RV. Quite a difference if you have a big loan to payoff and do not wish to buy another RV. Or want to downsize or change from coach to 5W. As LOG says, RV policies are often the total loss replacement type.

dons2346 · 11-03-2015, 09:50 PM

I have National Interstate with total replacement. I have had this since the coach was young enough to qualify but now that it is older, I went looking for an agreed value policy. In order to do that, I would have to have the coach "inspected" by some outside source and I would have to pay for the inspection which would cost me about $300! I have decoded that I will continue to pay the extra premium and if the coach burns up or is totaled in a wreck, I'll make out like a raped ape.

Gary RVRoamer · 11-04-2015, 05:53 AM

You have at least as good a chance if you buy Lotto tickets with that extra premium money. You are paying premiums on a very high value, maybe even the original MSRP if you've had it since new.

I dropped National Interstate replacement value coverage after 8 years and saved well over $200/year on premiums vs Fair Market Value. Agreed Value was even more expensive than replacement value, so I decided to risk the difference.

jeryan59 · 11-10-2015, 02:50 PM

You must read what the definition of 'Agreed Value' is on each policy, most will pay the agreed value in the event of a total loss, some state more specifically they will pay the lesser of the cost to repair or replace or the Agreed Value.

'Stated Value' usually is defined the lesser of the Stated Value in the Declaration, the cost to repair or replace, or the actual cash value, but not all companies use standard definition unless they are ISO (Insurance Service Office) companies, but they can vary.

I had an agreed value policy on a 1999 American Eagle, I purchased in 2001 and paid approximately $162,000 for and paid about $900-1,200 every year until 2012 when it burned. 11 years at $1,200= $13,200; I would estimate it was worth about $85k-$95k in 2012. If you assume I paid an extra $300 per year (which it wasn't) for Agreed Value so I received a minimum of $67,000 less the extra $3,300, or net $63,700 over the ACV value for my coach, I don't think that is an unreasonable extra premium dollars for the extra value I received. It is a risk, so you must decide if the extra premium dollars is worth the risk to you.

My current coach I could not get Agreed Value since it was 3 years old, but if I could I would have purchased it.

One of the issues is people rely on insurance people to know the product, most don't know the product just like many RV Sales people don't know the product they are selling.

I always advise people to read the exclusions and definitions in a policy, you will be generally much more informed than if you don't, but you may need to be willing to pay extra to a true insurance professional. You can't always rely on the online people, captive agents, independents as some just don't know so ask questions and spend a little time reviewing a sample policy to inform yourself.

MisterT · 11-10-2015, 03:11 PM

true, ACV should really be renamed 'Fair Market Value', which is what other vehicles of similar year, make, model, and mileage would bring in the used vehicle market - not RETAIL as with a dealer, but a Private Party sale, which is less.
Agreed Value means your insurer Agrees to pay this amount if a total loss occurs, minus your deductible of course.
Replacement Cost is the newest version, with a total loss payment of what a NEW similar Make, Model vehicle would cost, at retail. Most of these policies, though, state that you must actual REPLACE your totalled vehicle with a new one, otherwise you only receive the old ACV(fair market) value.