Agreed-Upon Value (AUV) Policy: If you have an agreed-upon value policy, the amount for your vehicle (with add-ons) is predetermined and agreed upon by both you and the insurance company before the policy becomes effective. In case of a total loss, the insurance company would pay up to the agreed value, including after-market add-ons that were specifically noted in the policy.
Actual Cash Value (ACV) Policy: Under an actual cash value policy, the insurance company is responsible for paying the market value of the vehicle at the time of the accident, considering its age, condition, mileage, and comparable market data. After-market add-ons are typically not accounted for separately and are included as part of the overall vehicle valuation.
Customized Add-Ons: If you have made significant customized add-ons or modifications to your vehicle, you might need to provide proof or receipts of the add-ons to the insurance company. Insurers may consider these enhancements when determining the vehicle's value.
Aftermarket Add-Ons Coverage: Some insurance companies or policies may offer additional coverage specifically for after-market add-ons. These add-ons may be covered under a separate endorsement or rider.
It is important to understand the terms and conditions of your auto insurance policy, and to discuss any concerns you have regarding after-market add-ons with your insurance company or agent. If you are negotiating a settlement for a totaled vehicle, you may want to consult with an insurance attorney or auto claims professional to ensure that you receive fair compensation for your vehicle and its add-ons.
