VIII. Specialty Vehicle Collision and Comprehensive Coverage:
If you are insuring a specialty vehicle such as an antique vehicle, a street rod, a motor home, a trailer, a home-built vehicle, or any other vehicle that is not normally bought and sold on the motor vehicle market, you need to be especially careful when buying collision and comprehensive coverage. WHEN BUYING COLLISION AND/OR. COMPREHENSIVE COVERAGE FOR A SPECIALTY VEHICLE, BUY ONLY “AGREED VALUE” COVERAGE. Your regular auto policy with such companies as Allstate or State Farm has collision/comprehensive coverage known as A.C.V. or Actual Cash Value coverage. It means that they will pay for covered repairs, less deductible, or in the case of a total loss, the actual cash value of the vehicle, less deductibles. All A.C.V. coverages contemplate significant reductions in the value of your vehicle based on it being worth less every day you own it (depreciation). Many specialty type vehicles actually appreciate in value, although mine never seem to. You don’t want to argue with your carrier if the vehicle you paid $20,000.00 for last year, burns or gets stolen, and they offer you only $12,000.00 for the vehicle, saying that their investigation indicates that your “pride and joy” was only worth $12,000.00. If you don’t agree with their valuation, you can hire a lawyer, and sue them (at your expense, of course). Another term you will see when talking about collision/comprehensive coverage is “stated value.” Generally, always buy agreed value coverage if you possibly can. Stated value policy will pay up to, but never more than, the stated value, but will not necessarily pay the stated value in the event of a total loss or theft.
