Best Auto Insurance Companies That Offer Agreed Value (2024)

Agreed value auto insurance is a type of coverage that allows you to insure your vehicle for a specific value agreed upon by you and the insurance company. This agreed value is determined based on factors such as the vehicle’s condition, age, and market value. In the event of a covered total loss, the insurance company will pay out the agreed-upon value rather than the actual cash value of the vehicle.

Agreed value auto insurance is particularly beneficial for owners of classic cars, antique vehicles, or unique automobiles whose value may not be accurately reflected in standard market valuations. By choosing agreed value coverage, you can ensure that you receive the full predetermined value of your vehicle in case of a covered loss, providing peace of mind and protection for your investment.

Well-regarded options include:

• Hagerty: Hagerty is a reputable insurance company specializing in classic and collector cars. They offer agreed value coverage and provide additional benefits such as spare parts coverage, roadside assistance, and flexible usage options.
• Grundy: Grundy Insurance has been in the classic car insurance business for over 70 years. They offer agreed value coverage and tailored policies for antique, collectible, and high-value automobiles.
• American Collectors Insurance: American Collectors Insurance is another popular choice for agreed value coverage. They provide coverage for a wide range of classic and collector vehicles, including cars, motorcycles, and trucks.

The process of determining the agreed value of your vehicle varies between insurance companies. Typically, you’ll need to provide detailed information about your vehicle’s condition, mileage, modifications (if any), and supporting documentation such as appraisals or photographs. An insurance representative will then assess these factors to determine the appropriate agreed value for your vehicle.

Insurance companies offering agreed value coverage may have certain requirements for eligibility. These requirements can vary but may include factors such as the age of the vehicle, its condition, storage arrangements, usage restrictions, and the driver’s history. Consult with the insurance company directly or work with an insurance agent specializing in classic or collector car coverage to understand specific requirements.

Agreed value coverage can be slightly more expensive than standard auto insurance because it provides coverage based on a predetermined value rather than the actual cash value of the vehicle. However, the cost will depend on various factors such as the vehicle’s value, your driving history, and the insurance company’s rates. Obtain quotes from multiple insurance providers to compare prices and coverage options.

While agreed value coverage is commonly associated with classic cars and collector vehicles, some insurance companies may offer this option for other types of vehicles as well. It’s best to check with the insurance company directly to determine if they provide agreed value coverage for your specific vehicle type.

In many cases, you can adjust the agreed value of your vehicle at the time of policy renewal. However, some insurance companies may have limitations or require updated appraisals or documentation to support any changes. Review your policy terms and conditions or speak with your insurance provider to understand their specific procedures for modifying the agreed value.

In the event of a covered partial loss (damage that doesn’t result in a total loss), agreed value coverage may work differently. Depending on the policy terms, the insurance company may cover the cost of repairs up to the agreed value, minus any deductibles. It’s essential to carefully review your policy or discuss this scenario with your insurance provider to understand the extent of coverage for partial losses.

In most cases, you can switch to agreed value coverage during your policy term. However, insurance companies may have specific guidelines or requirements for making this change. Contact your insurance provider or agent to discuss the possibility of transitioning from traditional coverage to agreed value coverage and any potential implications or adjustments to your policy premium.