When it comes to purchasing Caribbean boat insurance, many consumers are at a loss as to which type of coverage they should opt for to protect their vessel. Agreed Value and Actual Cash Value boat insurance have many differences, each with its own set of pros and cons. Read on for a look at the differences, so that you can make an informed decision when choosing between Agreed Value or Actual Cash Value boat insurance.
What Is Agreed Value Boat Insurance?Agreed Value boat insurance is a type of coverage that has an agreed upon amount that the owner will receive should something happen to their boat. Not all accidents and repairs are covered, so it is important to verify with your insurance carrier first before filing a claim. Agreed Value is a highly sought after type of boat insurance because you know exactly what you will be getting back if your claim is approved. There are many perks to this type of insurance. These include:
- Pre-arranged boat value
- Consumer can receive the total value of the boat back when their claim is approved
- Easy application and appraisal process
- More costly, but covers more
What Is Actual Cash Value Boat Insurance?An Actual Cash Value boat insurance policy is a little bit different than an Agreed Value boat insurance policy. Actual Cash Value policies only pay up to the value of the boat at the time the boat was lost or damaged. Depreciation, damage, and wear and tear are factored into the actual cash value, and you can receive considerably less in your award than you would if you had chosen an Agreed Value boat insurance policy. Actual Cash Value boat insurance is not without its own sets of advantages, though. Some of the advantages include:
- More affordable than Agreed Value boat insurance
- Painless application and appraisal process
- Easier claim process
The Bottom LineIt is important to compare the two policy types before signing on the dotted line. There are many differences, and only you can decide which is the right fit for you. If upfront cost is an issue for you, you may want to opt for the Actual Cash Value boat insurance, but keep in mind that you will probably not get as much back when you file your claim. Also, consider that the return can be vastly different, especially if you are filing a claim on a badly depreciated boat.
For more information on different types of boat insurance, give Casey Insurance Group a call at 888-537-1412.