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What Your Homeowner’s Insurance DOESN’T Cover

Agreed Value Versus Stated Value Classic Car Insurance Policies

We were able to sit down with Rick Drewry, Collector Car and Motorcycle Senior Specialist, again this month and ask him some questions about what is and isn’t included in most collector car policies. His answers might be surprising to you if you have never been informed of the differences between a stated value policy and an agreed value policy.

A stated value policy, in simple terms, is a policy which covers damage up to a certain limit. Stated value policies will cover the cost of damage to the car, or pay the stated value of the car, whichever amount is less.

An agreed value policy guarantees a certain amount of coverage. Under an agreed value policy, you know you will be paid in full in the event of an accident, and unlike other policies, the value of your coverage will not depreciate over time.

When you begin work on a classic car restoration, Classic Auto will work with you to develop a tailored stated value policy that will be in place throughout the restoration of your vehicle. What many car owners don’t realize is that most of the items in their garages are not covered under a homeowner’s insurance policy. In fact, many policies have exclusions for the items in a garage.

If you happen to be mid-restoration when a tornado hits your garage, and there are parts and pieces which have yet to be assembled on your car, you may be out several thousand dollars. This is where a stated value policy proves to be beneficial. No matter what condition your car is in, we can work with you to tailor it to the process you are working on, and give you the coverage you need so you don’t lose an investment you are working so hard to build.

According to Rick, most of Classic Auto’s stated value policies will remain in place until you are roughly 80% finished with your restoration. Once you have all of the parts in hand, and you are just down to the details, we can start working on an agreed value policy, and adjust it as the car reaches its final phases.

An agreed value policy is the most beneficial type of policy to classic car owners, because it assumes a low-risk, low-cost situation, and can save you potentially hundreds of thousands of dollars in the long run. Agreed value policies determine the worth of your car up front, and no matter what happens to that vehicle, we guarantee we will restore it to its original condition in the event of an accident, or pay you the full amount the car was worth.

When you secure an agreed value policy with Classic Auto, you are getting a true partner in your classic car ownership. We are invested in protecting your cars, and preserving them for your future, and the generations to follow you. We will work alongside you to find parts, replace pieces, and even help you find body shops that specialize in the type of work you need completed.

We would like to extend a big thanks to Rick for laying out all the differences between the types of policies, as well as what car owners need to be aware of with homeowner’s insurance. Look out for more information from Rick next week as we dig into some restorations he’s seen, some rare cars he’s worked with, and a few items in his personal collection.

If you would like a free, instant quote on one of our agreed value classic car insurance policies, give our customer service reps a call today at 888-901-1338!


About the Author

 is Vice President of Classic Automobile Insurance Agency, Inc. Classic Automobile Insurance Agency has been protecting collector, classic and exotics since 1992.

Posted: 5/23/2014 9:00:00 AM with 0 comments


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