Agreed value coverage. Sure, you’ve heard the phrase before. Your fellow car club members have discussed it. You know it’s important. It probably popped up a few times in your search for collector insurance. But, do you know what it means? Do you know why it is important?
We know the phrase can be confusing, but we’re here to tell you not to worry. Agreed Value coverage is the best physical damage coverage you can have for your collector vehicle, and we’ll explain why.
Take a look at your American Collectors’ policy declarations page – you’ll see a vehicle value listed there in black and white. This is the amount of coverage we have agreed to provide for your collector vehicle. In the event of a total loss – such as your car getting stolen or totaled in an accident – you will be paid this amount, less any applicable deductible, with no depreciation.
It is standard practice among regular auto insurers to depreciate a vehicle’s value in the event of loss. The insurance company is obligated to pay you only what industry guides say your "used car" is now worth. But, as any car collector knows, collector cars generally appreciate in value over the years, not depreciate! An agreed value policy guarantees you will be paid the full insured value of your collector vehicle in the event of a total loss. You’re totally covered!
Of course, American Collectors takes it a step further. Our program has always included an “Inflation Guard” feature, which automatically increases a vehicle’s value by 2 percent each quarter - up to 8 percent each year - at no additional cost. Instead of your car losing value, it gains it automatically and the additional value is fully covered. So, let’s review!
- Agreed Value – best possible coverage for your collector vehicle
- Depreciation – a factor in regular auto insurance, but not with your American Collectors policy
- Inflation Guard – fantastic added value at no additional cost