VFIS insures emergency response vehicles on an agreed value basis. What this means is that in the event of a covered claim, you will be paid the lesser of:
Having the option to select an agreed value is a great benefit for the insured. The insured is able to decide how much to insure a vehicle for based on their needs.
When determining what value to choose for your vehicle there are several factors and there is really no wrong answer. Starting at the low end, what is the actual cash value (market value) of the vehicle? Let’s say that is $250,000. On the high end, what would it cost today to replace it with a new vehicle with the same specifications? Let’s use $1,000,000 as an example for the high end value. Your agreed value should be somewhere between $250,000 and $1,000,000.
How you intend to replace that vehicle should also be a factor on choosing the agreed value. Would you replace it with a used vehicle of similar age and condition or maybe slightly newer? Would you replace it with a brand new vehicle?
Just be aware that on the high end, the vehicle could sustain extensive damage and possibly not reach 75% of the $1,000,000. And alternatively, on the low end you would more easily reach 75% of the $250,000, but then you might have to use other funds to purchase a more expensive replacement apparatus.
Other things to consider:
Any permanently attached equipment should be included in the agreed value.
If the vehicle is financed, you would not want an agreed value lower than the financed amount.
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