Finding the right classic car insurance

Owners of classic cars should be aware of the type of payout offered by a policy if the car is totaled. With a personal auto policy on a regular car, you’ll get the car’s “actual cash value” if it’s totaled or stolen. And unlike classic cars, regular cars depreciate (lose value) every year.

So instead of payouts based only on actual cash value, a classic car insurance policy might offer:

STATED VALUE:
Your coverage price is based on an amount you state when you buy the policy. You’ll need documentation to back up the stated amount for the car. However, if you have a claim, the insurer can pay you either the stated value or the actual cash value — whichever is less.

AGREED VALUE:
You and the insurance company agree on a value for the vehicle, likely based on appraisals and other documentation. If you have a total loss, you get the agreed value. Experts often recommend buying agreed value policies for collector cars. You can change the agreed value at renewal time to reflect new current value.