You’ve scrimped and saved and sacrificed for years but finally it’s sitting there gleaming in the driveway – your classic car. You’ve bought well and you believe you know what it’s worth. However what will you do if your insurer won’t agree with your valuation of your car? Getting classic car insurance quotes can quickly get complicated and if you’re not careful you can get lost in the fine print and technicalities.
To confirm your car’s value, refer to an industry price guide such as the NADA guide for classic cars. However, as reliable as these guides are they provide prices only on a range basis classifying cars as of low, average, or high condition. Arriving at more precise valuations requires a little more work.
Precise valuations can be achieved by assessing the condition of your car using what is known in the auto industry as a Condition Rating System. This System rates the condition of various key aspects of a car: Exterior, Paint, Glass, Trim, Interior, Mechanics, Authenticity, Special Features, and Desirability. The overall rating achieved by the car then determines where along the price range the car sits.
Unfortunately after establishing the monetary value of your car you will then need to decide whether you wish to insure it for Actual Cash Value, Stated Value, or Agreed Value. Though all these values sound equally beneficial, they are not.
Insuring your classic for Actual Cash Value means that in the event of a loss the insurance adjuster gets to make the final decision as to the value of your car. If you do not like their valuation then you will need to have the dispute settled by a third party.
Stated Amount sounds very much like Agreed Amount – a wonderful amount. However a closer examination of the wording of the definition of the term indicates that in the event of a loss you would likely receive a payout very similar to an Actual Cash Value figure.
Agreed Amount is the only wording and form of classic car insurance cover you need to get. It means quite simply that you are guaranteed to receive the amount specified in the contract in the event of a loss. But keep your eyes open for the exact wording – not every insurance company will offer this type of cover to its clients.