[BonzoHansen]

you better read the policy language real close. and I pay a lot less for agreed coverage through hagerty, $20,000 agreed value ~$300.

What You Should Know > Actual Cash Value/Stated Value

This form of coverage is typically provided by standard auto policies. The insurance company claims adjuster ultimately decides what your collector car is worth at the time of the loss.

While you may have some input, if you do not agree with the claims adjuster, the insurance company claims adjuster decides the final claims settlement.

If you do not agree with the claims settlement, you may have no alternative but to seek legal action, or, if specified in the policy, arbitration.

This form of policy is frequently and easily misunderstood.

It is often used on collector car policies. Most insurance agents typically represent it as being the same as "Agreed Amount." It is not! The "Stated Amount" form states the insurance company will pay the lesser of:

1. The Stated Amount or
2. The cost to repair the covered auto not to exceed the "Stated Amount" or
3. The "Actual Cash Value"

The "Stated Amount" helps determine the premium cost.

It does not guarantee you a settlement amount that reflects the value of the car when a loss occurs. The "Actual Cash Value" language allows the claims adjuster to settle your loss for an amount less than the "Stated Amount".

Sadly, most insurance agents are unaware of this detail. Most agents, unaware of the actual policy language, will insist if your collector car is stolen or totaled, you will receive the stated value.

Wrong!


Agreed Value

This is the only policy form guaranteeing you in writing what amount you will receive if your classic car is stolen or totaled during the policy period.

Note there is no "Actual Cash Value" clause in the form. The "Agreed Amount" form states the insurance company will pay you, the lesser of:

1. The "Agreed Amount," or
2. The cost to repair the covered auto, not to exceed the "Agreed Amount".

The "Agreed Amount" should be reviewed carefully with your agent before the policy is issued. Your agent and you must agree together upon the "Agreed Amount" before the policy is issued.

The "Agreed Amount" should represent the true market value of the car at the time the policy is written. If the market value changes during the policy period, the "Agreed Amount" can be changed by endorsement. Before policy renewal each year the "Agreed Amount" should be changed, if necessary, to reflect current market value.



Basically, "actual cash value" is determined by using "comps" just like on your standard car insurance policy. If they find other cars for less value that they consider "comparable" that's the amount they will pay. And they're the judge, not you.

http://www.lelandwest.com/faq/actual-cash-value.cfm