Auto Insurance For Collectible Cars: Agreed Value Policies

​Owning a collectible car is a source of pride for many enthusiasts. Whether it's a vintage classic or a rare exotic, these vehicles hold both sentimental and financial value. When it comes to insurance, traditional policies may not adequately protect your prized possession. That's where agreed value policies for collectible cars come into play. In this article, we'll delve into the world of auto insurance for collectible cars, with a focus on the benefits of agreed value policies.

What is an Agreed Value Policy?
An agreed value policy is a type of auto insurance specifically designed for collectible and classic cars. Unlike standard auto insurance, which typically pays out the actual cash value (ACV) of a vehicle in the event of a total loss, agreed value policies have a predetermined, mutually agreed-upon value between the insured and the insurer. This agreed-upon value serves as the coverage amount in case of a covered loss.

The Advantages of Agreed Value Policies for Collectible Cars

1. Guaranteed Value: One of the most significant advantages of agreed value policies is that they provide a guaranteed payout in the event of a total loss. With traditional policies, the insurance company may determine the actual cash value, which can be lower than what a collector believes their car is worth.
   
   
2. Protection for Appreciating Assets: Collectible cars often appreciate in value over time, unlike most standard vehicles. Agreed value policies acknowledge and protect this appreciation, ensuring that the insurance payout keeps pace with the car's increasing value.
   
   
3. Customized Coverage: Agreed value policies allow collectors to work with their insurer to set a specific value for their vehicle. This value is based on factors such as the car's rarity, condition, historical significance, and market value.
   
   
4. No Depreciation: Unlike standard auto insurance, which factors in depreciation, agreed value policies do not consider depreciation when determining the payout. This means you won't have to worry about your car losing value over time in the eyes of your insurer.
   
   
5. Specialized Service: Insurers that offer agreed value policies often have specialized teams or experts who understand the unique needs of collectible car owners. This expertise can be invaluable when assessing a car's value and providing tailored coverage.

Considerations for Collectible Car Owners

1. Vehicle Documentation: Proper documentation of your collectible car's value is essential. This includes appraisals, photos, maintenance records, and any restoration or modification details.
   
   
2. Usage Restrictions: Agreed value policies may have restrictions on how often and under what circumstances you can use your collectible car. Review the policy carefully to understand any limitations.
   
   
3. Storage Requirements: Many insurers require collectible cars to be stored in a secure, climate-controlled facility when not in use to qualify for agreed value coverage.

Conclusion
For collectors who treasure their classic or collectible cars, agreed value policies offer peace of mind and protection that standard auto insurance may not provide. These policies recognize the unique value and appreciation potential of these vehicles, ensuring that you receive a fair and guaranteed payout in case of a covered loss.

When insuring your collectible car, consult with an experienced insurer specializing in collectible auto insurance. They can work with you to establish an agreed value that accurately reflects your car's worth, allowing you to enjoy your prized possession with confidence, knowing it's protected.

​At Desmond Insurance, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get insurance that fits your needs. You can get more information about our products and services by calling our agency at (859) 491-5100. Get your free quote today by CLICKING HERE.

Disclaimer: The information presented in this blog is intended for informational purposes only and should not be considered as professional advice. It is crucial to consult with a qualified insurance agent or professional for personalized advice tailored to your specific circumstances. They can provide expert guidance and help you make informed decisions regarding your insurance needs.​