What determines the "agreed value" of an automobile under OPCF 19A?

The "agreed value" of an automobile under the OPCF 19A endorsement is established through a formal appraisal process. This process ensures that both the insurer and the insured have a mutual understanding and agreement on the vehicle's value at the time the policy is written. By relying on a professional appraisal, the agreed value reflects a thorough assessment of the vehicle's condition, market comparables, and other relevant factors specific to that vehicle, thus providing clear documentation that safeguards both parties in the event of a loss.

While market conditions, personal assessments, and manufacturer’s suggested retail prices can influence a vehicle's perceived value, they do not provide the same level of clarity and agreement that an appraisal does. The appraisal serves as a definitive figure that can mitigate disputes during claims processing, ensuring both parties are aligned on the vehicle's value from the outset.