ACTUAL CASH VALUE: What your car is worth. Claims adjusters will review the actual cash value of your car right before it had the accident. AGREED VALUE COVERAGE: Often used by owners of antique or classic cars, this coverage is based on an agreed value as determined by documentation provided by the car owner showing why the car is worth more than its book value. APPEARANCE ALLOWANCE: A settlement resolution that would apply to an insured item that has some sort of minor damage, is still fully functional, and the insured customer would rather be compensated for it in a small way and retain the item. APPRAISAL CLAUSE: Found in most policies, this clause gives you the right to ask for an appraisal if you disagree with the claim’s adjuster’s determination of howmuch money the company will pay you. Your insurance company can request an appraisal, as well. AT-FAULT STATE: The insurance of the person who causes the accident is responsible for paying the other driver’s damages. Insurance companies also take into account the percentage for which each driver is at fault. AUTO REPLACEMENT COVERAGE: Pays for repairs even when they cost more than the car is worth. Used by owners whowant to keep their car, regardless of damages.
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