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Old 01-13-2011
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RV Appraiser
Join Date: Jan 2008
Location: Louisville, KY
Posts: 5,268
Default Agreed Value Insurance Coverage Info

What is agreed value insurance?Agreed value insurance means in the event of a total loss (stolen or write off) of your vehicle, you will be reimbursed with an agreed amount based on the valuation of the vehicle given when you take out the policy. Agreed value means the payout is the price you are paying for in your insurance premiums, not what NADA says your coach is worth.
A standard insurance policy will only give you the current market value (NADA) and we don’t even want to go there; the value of luxury, classic or vintage motorhomes tends to fluctuate due to the desirability of the vehicle, so you can protect yourself from a massive financial loss by taking out an agreed value policy.
What do I need for agreed value insurance?A purchase agreement on a newly required motor coach or if you are getting new coverage at time of insurance renewal you will need an appraisal. In order to get the agreed value policy, the insurance provider may ask for the following before agreeing to insure you:
• Photos of the vehicle including: all sides of the coach, front and back ¾, the front and back of the coach, the engine bay, the vehicle registration plate, the dashboard showing the current mileage, and the interior of the coach.
• Service records/history acknowledgements
• Model specification & year of production
• Body color and originality
• Condition of the interior
• Details of all body damage
• Any major mechanical replacements, upgrades or overall vehicle improvements
Where to get an appraisal? Getting an appraisal should not be too difficult; there are several appraisal services available. I highly recommend getting an appraisal from someone who actually owns a motor coach, if that is not possible a heavy equipment or large vehicle appraiser can do the job. The last option you have is the average antique vehicle appraiser. There is a world of difference between a 48 Tucker and an 88 Wanderlodge, the only commonality between the 2 is the low production number. There were only 51 Tuckers built and chances are most antique automobile appraisers have never seen one. Ask for certification information, the appraisal “must” meet the Uniform Standards of Professional Appraisal Practices. The jury is still out on on-line appraisal services, so please be aware the money you spend for an on-line appraisal may not be in your best investment.
Practically all insurance companies will require an appraisal upon renewal on the third anniversary of the policy.
Check your policyWhen you take out your policy, you may want to ask about the following details about your coverage:
• Ask if you can increase the agreed value at renewal to correspond with the value of your coach.
• Check if you are covered when attending, events, rallies or meets ups with other enthusiasts.
• Consider a limited mileage policy – driving fewer miles can often result in a lower premium as you are deemed less of a risk to the insurer.
How to get an agreed value policy?Shop around – most major RV insurance companies will write an agreed value policy, Progressive, National Interstate, Blue Sky, and others. GEICO has gotten away from the AVP and have come up with total replacement but that is on a brand new RV purchase which does not include Blue Birds. Most insurers offer discounts if you are a member of Good Sam or FMCA.
Tips to save you money on your insurance.There are many ways in which you can save on your insurance policy; below are just a few examples:
• Pay for your premium in one payment – paying for your policy in a lump sum rather than monthly payments can reduce the cost of your insurance up to $300, so try and pay for the year if you can afford to.
• Secure your vehicle - any security device & where you park your coach may have an impact on the cost of your insurance; some coaches may not have an alarm, so getting one fitted will certainly help.
• Fire extinguishers, smoke alarms, carbon monoxide detectors and battery disconnect switches may also help reduce your premium ask for cost cuts.
• Consider changing insurers – the best prices are often given to new customers. Shop around, just because you think you are getting a good deal on the family Buick from your high school buddy doesn’t mean he will give you a break on your bird insurance.
Agreed value insurance is definitely the way to go when you are looking to protect your prized asset; just remember not to undervalue your vehicle – you are paying extra for the privilege of protecting your investment.
John McGinnis,
95WB42MD S60, Mid-Entry "B-Rex"
88FC35 (SOLD)
Louisville, KY/Jeffersonville, IN
2000 Jeep Cherokee
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