View Full Version : Actual Cash Value vs Agreed Value

04-03-2007, 10:37 AM
The thread on boat insurance got me thinking. I am having a hard time deciding if I should get my new boat insurance with Actual Cash Value or Agreed Value insurance. The premium appears to be about $80 a year difference.

What type of insurance do you have and why? I think for $80 a year I will probably go with the Agreed Value. My only concern is that they might try and repair a boat that should have been a total loss becuase of a high Agreed Value.

04-03-2007, 10:41 AM
I have the agreed value on my policy. When I looked at going with my buddies Allstate office they would not issue an agreed value policy so I stuck with Travelers. Fully expecting they were going to drop me like a hot rock after the claim.

04-03-2007, 12:47 PM
I ahve agreed value too. I feel that I'm covered better on an older boat w/ accessories, because I've done enough homework to know what I'd have to spend to replace what I have and it's more than book value.

04-03-2007, 01:40 PM
Agreed Value. They asked how much, I said a number, that's how we "agreed" on it.

04-03-2007, 02:12 PM
-Actual Cash Value is tax value, NADA type book value etc., lets say $10,000.
-Agreed Value is what YOU think the boat is worth in your mind and the insurer agrees to cover you for that amount, lets say $13,000. You will be paying a extra amount of premium to cover your extra imaginary value of $3000.

east tx skier
04-03-2007, 02:18 PM
Agreed value here. At a certain point, the market and the blue book values seem to digress.

04-03-2007, 02:35 PM
Agreed value here. At a certain point, the market and the blue book values seem to digress.

Just exactly why my credit union asked me..."you're wanting to pay how much for a 14 year old boat????"

They didn't really understand my short answer. "Yup, it's a MasterCraft!"

04-03-2007, 08:51 PM
We just went through insuring a new boat. Was told that actual value was best the first few years as you got close to book value, which is probably greater than the actual cost of purchase. Was told only go with agreed value when the boat got to be over 8 years old.... not sure if that's right but figured i could change it within the next few years. Traveler also told us that we would have to go through an assessment if we went with agreed value... and the cost diff was about 80.

04-03-2007, 09:01 PM
I'd say agreed value is the way to go unless you can get replacement cost (new boats only.... ins purchased w/in 30 days 25hrs or less). Make sure they understand agreed value, not stated amount.. SA will become an actual cash value in the event of a loss.. Agreed value both you and the co. have agreed on, thus the assessment... Stated amount is what YOU think it's worth, the co. sees it as let's hope his NADA is current.. but if it's worth less well pay less, and refund the over premium...Believe me I've seen them all IE just make sure you understand what you are getting...