What is the Stated Value of auto insurance vs. Agreed Value or ACV?

Sep 17, 2022 | Personal Insurance

Nowadays, cars are not just for travel purposes. Also, some people are fond of collecting classic, exotic, and antique cars. In addition, these types of cars have high value, and their value continues to increase over time. Regular car insurance will not suffice in protecting collectible vehicles. To protect their value, insurance companies offer classic car insurance coverage. Car collectors and aficionados can choose from stated-value auto insurance vs. agreed-value or ACV coverage.

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When to Get a Classic Car Insurance

Just when do you get classic car insurance? Both classic and regular vehicle insurance work the same. In addition, they provide liability, UIM, UM, and Med Pay coverage. Though they may have similarities, there are significant differences between the two. These differences have a huge impact when it comes to preserving the value of your vehicle. Consider these factors when choosing the appropriate auto policy coverage for your vehicle.


Car owners must consider the price value of their cars. In the same way, collector cars should have adequate coverage to preserve their value. In addition, a traditional car protection policy uses actual cash value payout in the event of total loss. Also, classic car insurance uses a much better valuation method. Furthermore, this insurance offers a stated or agreed value policy that provides better car valuation.

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How to determine your collectible car’s value:

Determining the precise market value of antique cars involves various valuation tools. In addition, the price of collectible autos greatly depends on the historical sale prices, present selling price, supply, and demand. So, here is the list of the free online collector and classic auto valuation tools you can use to determine what your car is worth. Also, these tools can only provide a rough estimate of your vehicle’s value. In fact, to get a precise car valuation, you need to get the service of a licensed appraiser.

  • National Automobile Dealers Association (NADA)
  • Collector Car Market Review
  • ConceptCarz.com
  • ClassicandSportscar.com
  • ClassicCars.com
  • eBay Motors
  • Bring a Trailer
  • Autotrader


Cars that need a specialized mechanic for repair should be enrolled in a classic auto policy as standard insurance will not cover it.


In general, cars depreciate over time. But, that’s not always the case, rare and antique cars increase their value over time. In addition, these kinds of cars are highly suggested to be under classic auto insurance to protect their value.

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How Classic Car Insurance Works

Classic car coverage offers the same coverage as standard auto insurance. In addition, this insurance policy is specifically designed to protect high-value cars. Also, it has additional unique features not available in traditional car insurance policies. Here is the additional coverage you can avail of when getting classic car insurance.

Increased Replacement Cost

Classic car insurance protects and secures the value of your car. In addition, classic and antique cars typically increase their value over time. This optional coverage will ensure paying the replacement cost even when it exceeds the guaranteed value.

Specialized Repair or Restoration

Classic cars may need a specialized mechanic to handle their repair or restoration. So, this policy will cover the expensive cost of specialized repair or restoration.

Spare Parts Coverage

Classic and antique wheels are hard to find, thus, spare parts are scarcely available and expensive. 

Automobilia Coverage

As classic and antique cars were built a long time ago, some of their parts become collector’s items. Vintage license plates, petrol pumps, and hood ornaments are collectible items that can be separately insured to protect their value.

Cherished Salvage Coverage

This optional coverage allows car owners to receive the stated or guaranteed value payout and at the same time keep the salvage vehicle in the event of a total loss. 

Roadside Assistance Insurance

In case of a roadside breakdown, this coverage will pay for the assistance needed. This includes flatbed towing, flat tire changes, battery jumpstart, and fuel delivery.

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Auto-Show Medical Reimbursement

This will shoulder the costs of medical expenses in case someone suffers from an injury related to your car exhibition.

No Attendance Required

This will allow continuous vehicle protection even in the absence of the car owner during auto shows and exhibitions.

Cash Settlement Option

In case of total loss or theft, car owners can decide whether to use the claim’s payout for vehicle replacement or not.

Types of Cars Qualified for Classic Car Insurance

  • Classic and Antique Cars (25-30 years old)
  • Also, Classic Military Vehicles
  • Classic Tractors
  • Exotic Cars
  • Customs
  • Kit Cars and Replicas
  • Modified Vehicles (hot rods, tuners, and lowriders)
  • Race Cars
  • Muscle Cars
  • Trucks
  • Retired Commercial Vehicles like Fire Trucks
  • 1980 and newer collectibles
  • Restoration in Process

Exclusions from Classic Car Insurance:

  • Cars for daily use
  • Recreational vehicles like pick-up trucks
  • Commercial use vehicles

Classic Car Insurance Eligibility 

The claim payout once the car is totaled is costly. Insurers set some terms and conditions for vehicles to be eligible for classic car coverage. For vehicles to be qualified for classic car insurance, they must meet the following requirements.


For vehicles to be classified as classic, the vehicle must be at least 20 years old. Vehicle age requirements vary from one insurance company to another. 

Mileage Restriction

Insurers often set a mileage limit every year. Some insurance companies give discounts on premiums if the total miles driven are fewer than the set limit.


Collectible wheels are not for regular use. Insurance providers only insure classic automobiles used for occasional drives and car exhibitions. The vehicle must not be for daily use or racing.


Proper storage is one crucial factor in preserving a car’s condition and value. Insurance providers typically require proper storage of insured high-value cars. The vehicle must be stored in a secured and enclosed garage. Public storage is a big no as it poses a lot of risks for damage and theft.


To qualify for classic auto coverage, the vehicle must be maintained and in good condition.

Driver Eligibility

To minimize the risks of accidents, the owner’s qualification is also taken into consideration. The car owner must meet the following requirements to be eligible.

  • At least 25 years of age
  • Possess a good driving record for the last 5-10 years.
  • The car owner must have a separate vehicle to use for daily commutes.
  • Do not have more than one case of an at-fault accident or moving offense within the last three years.

Difference between Stated Value, Agreed Value, and Actual Cash Value Policy

The main difference between these insurance policies is the car insurance premium and property value limit. A car insurance premium is the amount of payment car owners must pay for their car insurance coverage. By determining the differences between these insurance policies, car owners can properly choose which insurance coverage suits them best. 

Stated Value Car Insurance Policy

A stated-value car insurance policy is a type of coverage that pays the stated amount of the vehicle in the policy. However, the stated amount is not guaranteed. In the event of a total loss, insurance adjusters can choose to pay either by cash value ACV or stated value. Insurers will pay either the stated or actual cash value whichever is lower.

Actual Cash Value (ACV)

Actual cash value is the current market value minus depreciation. A regular auto insurance policy uses actual cash value to estimate the replacement cost of an insured car. When it comes to classic and antique cars, the actual cash value payout is far less than its full value.

Agreed Value Insurance Policy

If you want a guaranteed value payout, Agreed/Guaranteed Value coverage is the best option. With this type of coverage, insurance companies agree to pay the agreed value of the insured car. The full value limits offer is agreed upon by both the insurer and the insured. Car collectors must have the car appraised to determine its proven value. The downside of this policy is its availability. Only specialty insurers offer this type of coverage. Furthermore, the guaranteed value coverage premium is typically more expensive than the stated value policy. 

Which is Better?

When it comes to classic car insurance, the agreed value coverage is better. With the guaranteed maximum value payout, who wouldn’t prefer the agreed value policy? However, car collectors must consider some factors to determine if they need a guaranteed value policy. As the agreed value offers a guaranteed maximum value payout, the cost to replace a classic car is costly. 

When to Choose an Agreed Value Insurance

  • The car is high in value and hard to find.
  • You want to make sure of the guaranteed value of your vehicle.
  • The insured vehicle won’t lose value as it ages and may increase its value over time.
  • You can afford to pay more to protect and secure your vehicle’s value.

When to Choose Stated Value Insurance

Stated value coverage is suitable for people who want to provide enough protection to their collectible cars but cannot afford to pay such high premiums. The only difference is the guaranteed payout in the event of theft or total loss. With adequate safety practices, the risk of car theft and total loss would be significantly lower. 

The Best Classic Car Insurance Provider in 2021

To score good classic auto insurance, you must find a reputable insurance company. Investopedia and MarketWatch reviewed the major classic car insurance providers in 2021. Each insurance company was reviewed based on its industry standing, coverage options, and availability.

American Modern

It’s voted as the best overall classic car insurance provider by Investopedia. American Modern won as the best overall insurer because of its wide availability, huge discount offering, and inclusive policy coverage.


Hagerty progressive won as the best for restoration project cars. It is a specialty insurer that offers unique coverage policies including special coverage for restoration. 


It is the best insurance provider for frequent driving as it doesn’t have major mileage restrictions. It also offers great coverage and perks. 

Tips on How to Lower your Car Insurance Rate

Insurance providers typically give insurance discounts to car owners with fewer associated risks. Classic car insurance’s main objective is to protect and preserve the value of the insured car. Protecting your car from physical damage will greatly help in reducing your car insurance quote.  Here are some tips to lessen the risks of physical damage to your high-value cars:

  • Most classic car insurance providers set a vehicle mileage restriction. Keeping your car mileage lower than the set mileage gives you a good chance for premium discounts.
  • Provide stable and secured car storage. This will ensure your car’s safety against damage and theft.
  • It is best to purchase your regular and classic car insurance coverage from a single insurance provider. Bundling insurance coverage makes you eligible for discounts.
  • Update car valuation. Insurance premium greatly depends on the value of the vehicle. As car valuation depends on various factors, a car’s value may increase or decrease. It is highly recommended to regularly check and update your car’s value. This will ensure an appropriate estimation of insurance premiums.

More Tips on How to Lower your Car Insurance Rate

  • Enhance auto safety features. Ensure your car is adequately furnished with airbags, electronic safety controls, automatic seatbelts, and anti-lock brakes.
  • Invest in anti-theft devices like GPS trackers, dashcams, and alarm systems. This will greatly reduce the chances of your car getting stolen.
  • Check the coverage options and rates of different insurance providers. By checking out various insurance providers, you can properly compare which insurance provider offers the best option.
  • Find an independent insurance company that offers various types of insurance. This will enable you to bundle different insurance coverage like homeowners, classic and regular car insurance.
  • Most insurers offer discounts for drivers with good driving records. A driver with a good driving record signifies low risks for accidents and injuries.

There are various reasons car collectors love classic or antique cars. Some collect because of memories and craftsmanship. Some treat it as a valuable investment. A well-maintained classic and exotic cars increase their value over the years. Preserving the value of your collectible car can make you a lot of money. To fully protect your prized possession, it is important to furnish it with adequate car insurance coverage. It is vital to have a reliable insurance partner to maintain your most beloved vehicle. 

For whatever purposes you are collecting a car, we are here to help you preserve and protect the value of your classic car. We partner with the best classic car insurance providers to give our clients the best coverage options to choose from. Call us now here at Team AIS in Denver, CO, and let’s discuss the best coverage option suitable for your classic car.

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