What Does Classic Car Insurance Cover?

Do you have a classic, exotic, or modified car? If you do, you have reason to be concerned about what your insurance company would offer you if you totaled it. Acme Insurance Brokerage serving Amityville, NY can help you lock in a fair value for your car that makes replacement possible.

Insurance companies insure classic, exotic, and modified cars in three ways. Let’s start with the valuation method nearly everyone has on their classic car.

Actual Cash Value, or ACV

Actual cash value means saying "what your car was worth just before you crashed it." More precisely, ACV is what an adjuster thinks your car was worth before you crashed it.

If you disagree with the adjuster, you must present evidence to support your claim. This can be hard to do if you are recovering from injuries you sustained in a crash. If you can’t come to an agreement on the value of your car, you may have to go into mediation or take your insurance company to court. This can be a significant hassle.

Agreed Value

When actual cash value is the problem, the agreed value is the solution. If an agreed value is written up properly in your policy, there isn’t any wiggle room on the value of your car. But if you aren’t getting your coverage at Acme Insurance Brokerage in Amityville, NY, you may actually be getting the third valuation method with your policy.

Stated Value

When you get your classic car insurance online from one of the big companies, you will almost always get coverage for the stated value of your car. 

You might think that the agreed and stated values are the same, and you are covered either way. But many insurance companies include a clause in the policy that says, "In the event of theft or a total loss, we will pay the Stated Value or the Actual Cash Value, whichever is less."

In other words, you can state the value of your classic car, and the insurance company can ignore it.

Don’t try to get insurance for your classic car on your own. Let Acme Insurance Brokerage serving Amityville, NY help you find exactly the coverage you need.