What Is Agreed Value Classic Car Insurance?

The classic car culture is quite robust in Richardson, TX. If you are looking to buy classic car insurance for the first time, you might have come across the term “agreed value classic car insurance,” and you wonder what it means. Collum Insurance Group LLC provides this guide in navigating agreed classic car insurance.

What Is Agreed Value Classic Vehicle Insurance?

Agreed value classic vehicle insurance is a type of classic car insurance whereby you and the insurer agree on the maximum payout to be made upon you make a claim. This agreement between you and the insurer is made when you purchase your classic car insurance, making your coverage an agreed value classic car insurance. Therefore, the maximum payout will be the agreed value after an accident.

When Do You Need Agreed Value Classic Car Insurance?

At Collum Insurance Group LLC, we advise our clients to pick agreed value insurance if;

  • Pricing: The classic car doesn’t have a standard blue book, or the value in the blue book isn’t representative of the vehicle’s current market value since classic cars tend to appreciate the older they get.
  • Repairs: After an accident, fixing a classic vehicle usually requires a specialized mechanic to return the car to its original vehicle. This is typically a costly repair that standard classic car insurance policies rarely cover.

How Can You Keep Your Agreed Value Classic Car Insurance Rates Low?

  • Minimize mileage: Most classic car insurers will offer you better rates on your agreed value policy if you accept to drive fewer miles
  • Minimal usage: You can expect discounts on your agreed value policy if you agree only to drive your classic vehicle for pleasure
  • Secure storage: Your insurer will offer you discounts on your agreed value policy if you promise to store your car in a locked garage and not in the driveway. 

Contact Collum Insurance Group LLC for unbeatable classic car insurance deals in Richardson, TX.

Is Classic Car insurance different from Standard Car Insurance?

According to the Texas Department of Motor Vehicles, if you own a car that is older than 25 years in Richardson, TX, you may be able to register it under Classic Car regulations. If registered as a classic car, you will be able to protect it with Classic Car insurance.

Classic Car insurance offers protection similar to standard insurance, but the payout value differs if your car needs to be replaced.  New cars depreciate as you drive them. When you are involved in a serious accident, and your car needs to be replaced, the insurance policy pays out the car’s market value less the depreciation, depending on how old the car was when the accident happened. However, classic cars usually appreciate (they get more valuable) as the years pass. Therefore, if your car needs to be replaced, the policy will pay out the agreed value amount without depreciation.

That agreed value is based on the industry standard, and valuation guidelines set out by organizations like Classic Car Club of America and the Antique Automobile Club. It also takes into account any other research and documentation that you may have. The insurance industry experts at Collum Insurance Group LLC can provide accurate valuation and help you establish the agreed insured value. That will be the amount paid out to you should your car need to be replaced.

The rest of the policy is similar to standard insurance. It includes the state-prescribed minimum accident cover, bodily injury, and liability coverage. If you choose the comprehensive policy, it additionally covers collision with animals, vandalism, falling objects, and theft.

For a complete valuation of your classic car, pop into Collum Insurance Group LLC in Richardson, TX, to make sure your classic car is suitably protected.