DALLAS -- Chubb Group of Insurance Companies is offering Texas consumers a variation on guaranteed automotive protection, or GAP, insurance. Chubb calls the product "agreed-value coverage."
Like GAP, agreed-value coverage kicks in when a vehicle is lost or stolen.
But agreed-value coverage locks in the amount the consumer receives. GAP coverage pays the policyholder the difference between the cash value of the vehicle and the balance due on a loan or early-termination charges on a lease. Unlike GAP, agreed-value coverage is not subject to depreciation.
"Many Texans are spending $40,000 and $50,000 or more on a car," says Ray Crisci, auto product manager of Chubb Personal Insurance. "In the event of an accident, they don't want to lose thousands of dollars due to depreciation.
"Agreed-value solves the problem," Crisci says.
"If you paid $40,000 for your car, you can insure it for $40,000, and if your car is totaled, your claim can be settled for $40,000."