Personal Insurance
Understand agreed value, stated value, and actual cash value before you insure a classic.
Coverage for collector and classic vehicles, built around how the vehicle's value is determined after a total loss.
No obligation. Starting a review does not change or bind any coverage.
What's going on
A standard auto policy values a vehicle at actual cash value after a total loss, which accounts for depreciation and generally doesn't reflect what a collector vehicle is actually worth. If you own a classic, antique, or collector car, understanding how its value would be determined after a loss is the whole point of reviewing coverage before something happens, not after.
Why it matters
How a vehicle's value is determined after a total loss depends on which valuation method the policy uses, and the differences matter a great deal for a collector vehicle. Actual cash value factors in depreciation and can fall well short of what a classic car is actually worth. Stated value sets a value you and the carrier agree to at the start, but the payout can still be adjusted downward at the time of a claim. Agreed value locks in a specific dollar amount at the start of the policy that is paid out in full after a covered total loss, without a depreciation adjustment.
Things worth considering
Points we would talk through with you. Which of them apply depends on your situation, and what you do about them is your decision.
-
Which valuation method does your policy use — agreed value, stated value, or actual cash value?
This is the single most important thing to confirm on a classic car policy. Each method produces a different result after a total loss.
-
How was the vehicle's value determined?
Agreed value coverage is generally based on an appraisal, sale documentation, or another form of valuation evidence. It's worth knowing what documentation supports the value on your policy.
-
Does the policy have mileage or usage restrictions?
Many classic car policies limit annual mileage or restrict use to shows, exhibitions, and pleasure driving rather than daily use. It's worth confirming this matches how you actually use the vehicle.
-
How is the vehicle stored?
Storage conditions, such as an enclosed garage versus outdoor parking, can be a factor carriers ask about.
-
Does the policy cover spare parts or restoration in progress?
If you're restoring the vehicle or keeping spare parts on hand, it's worth asking whether those are addressed separately from the vehicle itself.
-
How often should the agreed value be revisited?
Collector vehicle values can change over time, in either direction. It's worth periodically revisiting whether the agreed value still reflects the vehicle's current worth.
Information on this website is general in nature and is not a complete description of any insurance policy or every coverage option that may be available. Coverage availability, terms, conditions, limits and exclusions vary by insurer, policy and individual circumstances. The issued insurance policy and applicable endorsements control coverage. Beacon Point Insurance Group may provide information regarding available insurance options and discuss coverage considerations based on information you provide, but customers are responsible for selecting the carrier, coverages, limits and deductibles they wish to purchase. No insurance coverage is bound, changed, or canceled through this website unless confirmed by Beacon Point Insurance Group or the applicable insurer.
How this tends to come up
-
A restored vehicle insured under a standard auto policy
A collector in the Kansas City metro had insured a fully restored classic under a standard auto policy for years, without realizing it would be valued at actual cash value after a total loss rather than what he'd put into it.
-
Confirming what documentation supported the agreed value
An owner in Independence wanted to insure a car for a specific agreed value. The conversation covered what appraisal or documentation would support that number if a claim were ever filed.
We Learn. We Compare. We Explain. You Decide.
- 01
We Learn
We ask questions about your situation and the insurance you currently carry.
- 02
We Compare
Based on the information you provide, we can obtain and compare available options from the insurance companies we represent.
- 03
We Explain
We help you understand important differences in coverage, limits, deductibles, policy terms, and price.
- 04
You Decide
You select the company, coverages, limits, deductibles, and options you want to purchase.
What working with us is like
The part people tend to mention is that someone explained it and then let them decide.
More personal coverage
Let's find the options that work for you.
No obligation. Starting a review does not change or bind any coverage.