The amount agreed by the insurer and insured as the reasonable costs to repair damages to a motor vehicle, without considering any deductions, is called what?

The term that describes the amount agreed upon by the insurer and the insured as the reasonable costs to repair damages to a motor vehicle, without considering any deductions, is referred to as the agreed price. This concept is essential in insurance claims and damage appraisals because it establishes a clear understanding between both parties of how much will be allocated for the repair costs. It reflects the mutually accepted estimate for restoring the vehicle to its pre-damage condition, ensuring transparency and facilitating the claims process.

In this context, other terms may relate to different aspects of vehicle valuation or insurance agreements. For instance, "final estimate" might imply a concluding figure after negotiations, while "repair cost" generally refers to the expense incurred for fixing the vehicle, which might not consider any agreed terms beforehand. Meanwhile, "fair market value" pertains to the estimated worth of the vehicle in an open market, which does not necessarily align with the repair costs. Thus, the correct term appropriately captures the specifics of the agreement regarding repair costs without considering other factors.