Classic Car Insurance for your Cars and Trucks

Because most cars begin depreciating the moment they’re driven off the lot, standard insurance companies insure your cars accordingly. 

Actual Cash Value (ACV): This method calculates the value of your vehicle based on its current market value minus depreciation. For classic or collector cars, this might not always reflect their true value

Because most cars begin depreciating the moment they’re driven off the lot, standard insurance companies insure your cars accordingly. 

Actual Cash Value (ACV): This method calculates the value of your vehicle based on its current market value minus depreciation. For classic or collector cars, this might not always reflect their true value, as these vehicles often appreciate or have unique qualities that aren't fully accounted for in a standard ACV calculation. 

The second type of coverage would be stated value. In many cases, an individual will ask the insurance company that insures their other personal autos to add coverage for their collector car, so the insurance company will add the car to the policy with the stated value endorsement.

Stated Value: This method involves you stating the value 

The second type of coverage would be stated value. In many cases, an individual will ask the insurance company that insures their other personal autos to add coverage for their collector car, so the insurance company will add the car to the policy with the stated value endorsement.

Stated Value: This method involves you stating the value of your car when you purchase the policy. If a loss occurs, the insurance company will pay the lesser of the stated value or the actual cash value of the vehicle. Unlike agreed value, stated value does not guarantee a set payout amount; it's a way of establishing a maximum limit for claims. 

Agreed Value: With this method, you and the insurance company agree on the value of your car at the time you purchase the policy. If a loss occurs, the insurer will pay out the agreed-upon amount, regardless of depreciation. This is a popular option for classic and collector cars because it ensures that you receive a predetermined amount 

Agreed Value: With this method, you and the insurance company agree on the value of your car at the time you purchase the policy. If a loss occurs, the insurer will pay out the agreed-upon amount, regardless of depreciation. This is a popular option for classic and collector cars because it ensures that you receive a predetermined amount that reflects the car's value to you, without considering depreciation.

This is the coverage that you want to have for your collector car on your insurance policy. So, if you own a classic car, it is important that you understand how your car is insured on the policy you have purchased. You do not want to find out after something happens that you did not have the right coverage.