Agreed value vs. stated amount

Nothing compares to the feeling of driving an antique or classic car and turning heads wherever you go. That’s why protecting your ride, with the right kind of car insurance, is so important. But what type of insurance is best for both your classic vehicle and your lifestyle?

Before you research the differences between agreed value and stated amount, check if your car is eligible for coverage. Your American Family Insurance agent can help you determine if your vehicle qualifies for antique/classic auto insurance. Then, once you establish your car’s status, you can figure out what type of insurance you want.

What do we mean by agreed value?

Agreed value is a type of coverage where you and your insurance company agree upon the value of your vehicle when you take out the policy.

Agreed value is a good option. It allows you to explain what you’ve added to the car and why it may be worth more than other similar cars.

If you experience a covered loss, the system will pay you the lower amount. This will be either the repair cost or the agreed value. This applies even if the vehicle has lost value.

What does the stated amount refer to?

The value of an antique or classic car is more complex. A limit exists on what they will pay. This amount reflects repair costs, the car's cash value at the time of loss, or the agreed stated amount.

A stated amount car insurance policy can help lower your premiums. It also provides you with the protection you can afford.

Additional car insurance

While your classic car is pretty special, it still has some of the same insurance needs and requirements that any other vehicle has. Property, collision and comprehensive insurance protect classic cars just like they protect regular cars. Many states require liability insurance and this requirement applies to antique vehicles as well.

In addition, there are other add-ons your agent can help you select that may make you feel more comfortable about the protection you have for your favorite set of wheels, and the loved ones who ride in it.

This information represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Exclusions may apply to policies, endorsements, or riders. Coverage may vary by state and may be subject to change. Some products are not available in every state. Please read your policy and contact your agent for assistance. This article is for informational purposes only and includes information widely available through different sources. This article does not afford, offer, or guarantee any coverage.