Insuring Your Classic Car: Why You Should Know It's Value

When the time comes to either buying a classic car, or more crucially, selling your classic car, knowing its value for a multitude of reasons becomes vital. Knowing your classic car's value for the right kind of insurance cover will ensure that what you've put into your investment on wheels, gets protected in the unfortunate case of an accident occurring.

When it comes to insuring your classic car, knowing its true value will assist in you obtaining the right level of coverage. A classic car insurance policy typically insures your vehicle for its true value, whereas a standard auto policy may only cover the actual cash value of a car (the cost to replace the car, minus depreciation). So if you know your vehicle's value before buying a classic car policy, you can get an accurate quote and insure it for what it's truly worth

What some may not know, especially those who are new to the classic and vintage car market, is that one has the option of agreed and stated values for insurance which are two common methods insurers use to determine classic car payout limits.

Stated value is what you say your car is worth (potentially requiring proof), while agreed value is the insured amount you and your insurer agree on. Neither is the same as the actual cash value of your car, as that would have to factor in depreciation based on age. Here are some key differences between these two classic car valuation methods:

What is Agreed Value?

Agreed value is the amount your classic car is worth as settled on by you and your insurer at the time of initiating or updating your policy. This value won't automatically change, but some insurers may want your vehicle re-evaluated at the beginning of each new policy term in order to ensure its value is still justly valued in line with market values.

What is Stated Value?

Stated value is what you say your classic car is worth to your insurance company when requesting a quotation for a policy. You may need to provide documentation to back up your stated value. However, when an insurer uses stated value instead of agreed value, they don't necessarily pay out the stated value after a covered loss or accident. Depending on your policy, they might pay either the actual cash value or the stated one, whichever is less. Insuring your classic car at a stated value that's less than its actual cash value may give you a lower premium, but you risk getting a lower payout if it ends up being a write-off.

An in-demand, rare or highly sought-after, or professionally and fully restored classic car is worth much more than a car that has been partially restored, or one that was restored by an amateur.

Determining your classic car or vintage car's value:

To find out the value of your classic or vintage car, you may need to have readily available the following information:

• Year, make, and model

• Body type

• Engine size

• VIN number

• Current condition of your vehicle, including history of work or restoration

• Images for the start/initiation of an insurance policy

Compiling this information can help you, your appraiser, and your potential insurer identify any unique or high-demand features that add to your vehicle's value. For example, vehicle demand, rarity, restoration condition, current condition, and its ability to be restored can all affect your classic car valuation. Have these particulars ready when you contact us at Auto-Thentic to find out how much your collectible classic or vintage car is worth.

Please note: The above is meant as general information to help you understand the different aspects of insurance. This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provisions, limitations, or exclusions expressly stated in any insurance policy. Descriptions of all coverages and other features on this page are necessarily brief; in order to fully understand the coverages and other features of a specific insurance policy, we encourage you to read the applicable policy and/or speak to an insurance representative. Coverages and other features vary between insurers, vary by country and state, and are not available in all regions. Whether an accident or other loss is covered is subject to the terms and conditions of the actual insurance policy or policies involved in the claim. References to average or typical premiums, amounts of losses, deductibles, costs of coverages/repair, etc., are illustrative and may not apply to your situation. We are not responsible for the content of any third-party sites linked from this page.