What is Agreed Value Cover for Classic Cars?

For classic car owners, standard insurance often doesn’t do justice to the time, money, and passion poured into their vehicles. Unlike everyday cars, vintage and classic cars have a value that can be hard to define, especially when rarity, history, and personal significance come into play.

That’s why agreed value cover is such a practical lifeline. It’s a specialised type of car insurance that ensures your pride and joy is covered for its full worth, as agreed between you and your insurer. In this article, we’ll explain what agreed value cover is and how it works for classic cars, as well as why it’s such an important option for classic car enthusiasts.

What is agreed value cover?

Agreed value cover is a type of insurance specifically designed to reflect the true worth of your classic car. Unlike standard car insurance, which will typically calculate payouts based on market depreciation, agreed value cover locks in a fixed amount for your vehicle, which is determined at the start of your policy.

This agreed value is established through a combination of appraisals, expert assessments, and market data. It takes into account factors such as the car’s condition, rarity, historical significance, and any customisations you’ve made. By working closely with your insurer, you can arrive at a figure that represents what your classic car is genuinely worth.

To put it into context, let’s compare it to other valuation methods:

• Actual cash value: This is the approach most standard car insurance policies use. Payouts are based on your car’s market value at the time of a claim, factoring in depreciation. For classic cars, this often falls way short of their true worth.
  
  
• Stated value: With this method, the owner provides an estimated value for the car, but insurers may still pay less if they determine the car’s market value is lower at the time of a claim.

Agreed value cover ensures there are no surprises. If your car is stolen or written off, you’ll know exactly what payout you can expect, giving you peace of mind that your vintage auto is fully protected.

How agreed value cover works for classic cars

Agreed value cover is designed to protect your classic car by guaranteeing its full insured value in the event of a total loss, like theft or a serious accident. Here’s how it works step by step.

Establishing the car’s value

When you take out an agreed value policy, the first step is determining the car’s worth. This is done in collaboration with your insurer, who may request an independent appraisal, recent sales data for similar models, or detailed photographs and documentation of the car’s condition.

Setting the agreed value

Once the assessment is complete, you and your insurer settle on a specific value for your car. This figure becomes the guaranteed payout if the car is stolen or irreparably damaged, making sure you’re not left out of pocket.

Policy renewals and reappraisals

Classic cars can increase in value over time, particularly if they’re rare or have undergone restoration. With agreed value cover, it’s important to periodically review and update the valuation, ensuring it always reflects the car’s current worth. Many insurers will remind you to do this at renewal time, but it’s worth keeping track yourself if your car’s value changes significantly.

Claim payouts

If the worst happens and you need to make a claim, agreed value cover means you’ll receive the full insured amount, minus any applicable excess. There’s no haggling over depreciation or market trends — the payout is based on the figure agreed when the policy began or was last updated.

With certainty and transparency throughout, agreed value cover is ideal for classic car owners who want to ensure their investment is fully protected, no matter what happens.

Benefits of agreed value cover for classic car owners

For those who invest time, money, and passion into their classic cars, agreed value cover provides a satisfactory classic car valuation. Here are some of the reasons why it’s such a popular choice.

Guaranteed payout for your car’s full value

If your car is stolen or written off, agreed value cover means you’ll receive the full amount you insured it for. There’s no guessing or negotiating about its worth at the time of the claim, which can be a relief when dealing with an already stressful situation.

No worries about depreciation

Classic cars often appreciate over time or hold their value, unlike modern vehicles. With agreed value cover, your policy reflects what your car is truly worth, not a figure reduced by depreciation.

Tailored to your car’s uniqueness

Every classic car has its own story. Whether it’s a rare make, a custom restoration, or an heirloom that’s been lovingly cared for, agreed value policies take these factors into account to reflect its true worth.

Confidence in your investment

When you’ve put so much effort into preserving a classic car, it’s good to know your policy matches its value. It’s about protecting what your car represents to you.

Suited to classic car lifestyles

Agreed value policies are perfect for enthusiasts who use their cars occasionally, such as for events, exhibitions, or weekend drives. These policies are designed with these unique lifestyles in mind, offering cover that fits around the way you use your car.

Factors to think about when choosing agreed value cover

Agreed value cover is an excellent option for classic car owners, but there are a few things to keep in mind when deciding if it’s the right fit for you:

Choosing a knowledgeable insurer

Not all insurers are created equal, especially when it comes to classic cars. Look for a provider with experience in classic car policies, like Footman James, who understand the intricacies of valuing and protecting these vehicles. Their expertise can make all the difference when it comes to setting an accurate agreed value and navigating claims.

Documenting your car’s condition

To set an agreed value, you’ll need to provide evidence of your car’s condition. This might include recent photographs, receipts for restoration work, and an appraisal from a specialist. Keeping this documentation up to date is important, especially if your car has appreciated in value or undergone significant upgrades.

Regular reappraisals

Classic cars can increase in value over time, so it’s worth reviewing your policy periodically to ensure the agreed value remains accurate. Many insurers will allow you to adjust the value as needed, but it’s your responsibility to request an update.

Understanding policy limitations

While agreed value cover is comprehensive, it’s important to read the fine print. Some policies might have restrictions, such as how often you can drive the car or where it must be stored. Make sure you’re aware of these conditions to avoid any surprises.

Cost considerations

Agreed value cover can sometimes be more expensive than standard policies, but the peace of mind it offers tends to outweigh the extra cost. Compare quotes from trusted insurers and weigh the benefits against the premium to determine what works best for you.

Protecting your classic car the right way

Agreed value cover offers peace of mind for classic car owners, ensuring your pride and joy is protected for its true worth — not just its market value. Unlike standard car insurance, this type of policy is tailored to reflect the unique qualities of your vehicle, from its rarity to the care and craftsmanship it represents.

At Footman James, we understand that a classic car is far more than just a mode of transport. It’s a passion, a hobby, and often a lifelong dream. With over 40 years of experience, we’ve crafted policies that prioritise what matters most to enthusiasts like you — from agreed value cover to additional options like laid-up insurance for cars that are stored or being restored.

Whether your classic car is for Sunday drives, show appearances, or simply for safekeeping, having the right cover in place ensures it’s protected no matter what. Explore Footman James’ specialist classic car insurance policies to find the perfect fit for your vehicle.

Classic car insurance from Footman James

With Footman James you can get a classic car insurance online quotation instantly for your classic Land Rover, Jaguar, Mini, VW and more. You can also add FJ+ options to your quote such as agreed value and breakdown cover.

 

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.