Market value coverage pays out based on your car's estimated resale value at the time of a total loss claim, which naturally decreases as the vehicle ages and depreciates. Agreed value coverage, by contrast, locks in a fixed payout amount agreed with the insurer at the start of the policy, regardless of how much the car has depreciated by the time of a claim, and is typically available at a higher premium since it removes the depreciation risk from the policyholder.
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