Insuring Your Classic Cars: Agreed-Value or Stated-Value Policies

Fall is here, and as the leaves change and temperatures drop, classic car owners across the nation are preparing to tuck away their cherished vintage vehicles. The return of unpredictable weather patterns that can cause roof, window, and body leaks, so it’s essential to ensure your collectible automobiles are protected from the unimaginable. Due to their limited use and typically higher value, antique and classic cars require specialized insurance, distinct from your everyday vehicle coverage. Let’s explore the ins and outs of insuring classic cars, specifically focusing on two popular coverage approaches: agreed-value and stated-value policies.

The Unique Nature of Antique and Classic Cars

Antique and classic cars hold a special place in the hearts of their owners. They are more than just transportation; they are well-cared for pieces of history and art. These vehicles often spend most of their lives in temperature-controlled storage, only to be brought out for special occasions, shows, or leisurely weekend drives. Their limited use — and the care that goes into preserving them — make insuring them a unique challenge. 

Agreed-Value Policies

Agreed-value policies are one of the go-to options for classic car insurance. Here’s how they work:

Appraisal. To determine the agreed value, you and your insurer will determine a set value for your classic car, which is typically done through an appraisal process in which an expert assesses the car’s condition and market value.

Premiums. You’ll pay premiums based on the agreed value, which is generally higher than the actual cash value (ACV) of the vehicle. This ensures that in case of a total loss, you’ll receive the agreed-upon value, providing peace of mind for car collectors.

Coverage. Agreed-value policies usually cover a wide range of classic cars, from vintage sports cars to antique trucks. They often include coverage for spare parts and modifications, making them suitable for comprehensive classic car protection.

Stated-Value Policies

Stated-value policies are another option for classic car insurance, and they include:

Declared Value. With stated-value policies, you declare the value of your classic car when you purchase the insurance. This value should be based on your assessment (through an appraisal) of the car’s worth.

Premiums. Your premiums are calculated based on the stated value, which can be lower than the agreed value. This type of policy can be more budget-friendly, but it’s crucial to ensure that the stated value reflects the true worth of your car.

Flexibility. Stated-value policies offer more flexibility in terms of the value you assign to your classic car, but they may have some limitations in terms of coverage for modifications or spare parts.

Making the Right Choice

When it comes to insuring your classic car, the choice between agreed-value and stated-value policies largely depends on your vehicle’s value and your budget. Just remember: Agreed-value policies are suitable for high-value classic cars — offering full protection but with slightly higher premiums — while stated-value policies are more budget-friendly, making them a good choice for cars that may not be as expensive but are still valuable to you.

Get Protected

As you prepare to stow your classic car away for the season, remember that insuring it is a vital step in preserving your investment. Whether you choose an agreed-value or stated-value policy, be sure it aligns with the true value of your beloved classic. These policies are tailored to protect not just your car but the passion and history it represents. So, enjoy the autumn weather, knowing your classic beauty is protected from the unexpected.

For more detailed information and to discuss the best insurance policy for your classic car, let a qualified Dayton Ritz + Osborne insurance expert assist you with any questions and help connect you with the best coverage options. Your classic car deserves the extra care and attention that only a specialized policy can provide.

Dayton Ritz + Osborne Insurance proudly serves the Hamptons area. Call today at 631-324-0420 or visit our website


The above description provides a brief overview of the term and phrases used within the insurance industry. These definitions are not applicable in all states or for all insurance and financial products. This is not an insurance contract. Other terms, conditions and exclusions apply. Please read your official policy or full details about coverage. These definitions do not alter or modify the terms of any insurance contract. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control.