Agreed value and new-car replacement cost serve different policy stages and are rarely mutually exclusive on a single contract. Replacement cost features are typically designed for brand-new vehicles, ensuring that if your car is written off within its first year or two of ownership, the insurer replaces it with a brand-new model of the same make. Agreed value locks in a specified cash payout figure for older or unique vehicles. If you drive a brand-new car, new-car replacement is superior; for used or unique cars, agreed value provides precise financial control.
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