Classic Car Owners: What to Know About Agreed Value Auto Insurance

Classic cars often hold significant sentimental and financial value, and standard auto insurance may not provide appropriate coverage. Agreed value auto insurance may be a better fit. This type of policy offers coverage that reflects the true worth of a classic vehicle, not just its market depreciation.

What Is Agreed Value Auto Insurance and How Does It Work?

Agreed value auto insurance is a policy option designed specifically for collectible or classic vehicles. Unlike standard auto coverage, which typically bases payouts on actual cash value (factoring in depreciation), agreed value policies are based on the vehicle’s value. This amount is determined through an agreement between the owner and the insurance provider during the application process.

To establish the agreed value, insurers may request documentation, such as photos, appraisals or restoration receipts. Once both parties settle on a number, that’s the amount you would receive in the event of a total loss, which means no haggling over current market value or depreciation.

It’s essential to update this value periodically. Classic cars can gain value over time, especially with ongoing restoration or market demand. Keeping the agreed value current can help make the claims process easier.

Agreed value coverage may also include mileage restrictions or storage requirements, which are typically outlined in the policy. These terms are not meant to complicate ownership, but to reflect how these vehicles are usually driven and maintained.

Classic Car Insurance Near You

Action Insurance Company can help secure optimal coverage for your classic cars. Contact us today for a free quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.