Specialty Car Insurance: Car Values

If you are a proud owner of a classic car and you want to keep your beloved asset protected with proper insurance policy, now is the best time to look into specialty car insurance. Insurance companies have been offering classic car insurance policies and specialty car insurances for years now, with tailored plans to fulfill every classic car owner’s needs and wants.

Before you go ahead and contact your insurance agent, there are several things you might way to consider regarding insurance policies for classic cars. These three jargons, Actual Cash Value, Stated Value, and Agreed Value, are among the things you should understand whenever you are getting car insurance for your masterpieces.

Actual Cash Value or ACV is the real intrinsic value of your classic car, with depreciations and other factors accounted for. Although the value of your classic car might be so much more due to historical values and rarity, the Actual Cash Value of your car might be a lot lower than you expected; the older your car, the less value it has to the insurance company. Stated Value might be more suitable for collectibles, with approximate market value used to assess the overall value of your car. The amount of protection given will match the cost needed to restore your classic car to its current condition should an accident happens. Agreed Value is the best measurement to use, with both you and your insurance company agreeing on a certain value for the classic car being insured.