Classic Car Insurance: Agreed Value

Classic, collectible and antique cars are insured differently from daily drivers because they are used differently: rarely, gently, and often with a value that has nothing to do with ordinary depreciation. A standard auto policy would pay only the depreciated book value after a loss, which for a restored classic can be a fraction of what it is worth. Collector policies are built around agreed value instead.

How collector policies differ

• Agreed value. The payout for a total loss is a figure you and the insurer agree on up front, often supported by an appraisal. No depreciation.
• Limited mileage. Lower annual mileage limits are the main reason premiums stay low.
• Usage restrictions. Pleasure driving is covered; daily commuting and commercial use usually are not.
• Spare parts and tools. Often included, along with coverage for memorabilia.
• In-transit and auto-show coverage. Protects the car while trailered or displayed.

Premium ≈ agreed value × rate (by age, usage, mileage limit, storage)

What the insurer will require

• Secure, enclosed storage when not in use.
• Proof of a daily driver on a separate policy.
• A mileage cap, often 3,000 to 5,000 miles a year.
• Documentation of restoration and value, such as photos and receipts.

Modifications and restorations

Extensive modifications - engine swaps, custom fabrication - can move a car into a different product, such as a modified or kit-car policy. Tell the insurer exactly what has been done, so the agreed value reflects it and a claim is not denied for undisclosed changes.

Frequently asked questions

Can I drive my classic car daily? Not on a collector policy. Daily use requires a standard policy, which will not pay agreed value.

What if my car goes up in value? You can usually raise the agreed value at renewal with updated documentation.

Estimate your premium with the calculator below.