What is Agreed Value Car Insurance?
Agreed value car insurance is a specialist insurance, specifically designed to cover the full worth of vehicles that have a high value, unique features, or sentimental worth.
With agreed value insurance, the insurer and the policyholder determine a specific value for the car at the start of the policy. This value will be paid out if the car is written off, regardless of depreciation, giving you complete peace of mind that your car’s true worth is safeguarded.
How Does Agreed Value Car Insurance Differ from Standard Car Insurance?
While standard car insurance typically pays the current market value in the event of a claim, agreed value insurance ensures the policyholder receives a pre-determined pay-out.
Standard policies might not fully account for the unique value of classic or rare cars, as market valuations often overlook restoration work, rarity, or sentimental value. With an agreed value policy, the amount you receive after a total loss won’t be affected by depreciation, making it ideal for cars that retain or appreciate in value.
Types of Vehicles Covered by Agreed Value Insurance
Agreed value insurance is not limited to any one type of vehicle; however, it’s commonly used for cars with unique value characteristics. Vehicles often covered by agreed value policies include:
- Classic Cars: Vehicles usually over 20-25 years old that are rare, well-preserved, or fully restored.
- Vintage Cars: Antique models typically over 40 years old.
- Modified Cars: Cars that have undergone significant changes from the original factory specs.
- High-Performance and Supercars: Luxury or rare sports cars.
- Kit Cars and Custom Builds: Vehicles assembled or customized by hand with unique components.
Each of these vehicles typically has a value that is difficult to measure by market standards, making agreed value coverage essential.
How our process works
We’ve worked hard to refine our process and keep it as quick, easy and simple as possible for our customers.
What is Covered by Agreed Value Car Insurance?
Agreed value car insurance typically provides comprehensive coverage similar to standard policies, with the key addition of a guaranteed payout amount in the event of a total loss.
What is Not Covered by Agreed Value Car Insurance?
Who Needs Agreed Value Car Insurance?
Agreed value insurance is particularly suitable for those who own cars that are rare, classic, modified, or high-value. If your car is worth significantly more than its market value due to unique attributes or sentimental value, agreed value insurance ensures you’re fully covered in case of a total loss. This type of policy is ideal for:
- Classic car collectors
- Enthusiasts with modified or kit cars
- Owners of luxury and high-performance vehicles
- Investors in rare vehicles or automobiles that appreciate over time
How Much Does Agreed Value Car Insurance Cost?
The cost of agreed value insurance depends on factors such as the car’s value, its usage, and the driver’s age and history. Generally, these policies can be more expensive than standard car insurance due to the higher pay-out guarantee.
However, many insurers offer discounts for limited mileage or safe storage. On average, a classic car agreed value insurance policy might cost £200-£500 per year, but high-value vehicles could see premiums well above this range.
How to Compare Agreed Value Car Insurance Quotes
When comparing agreed value insurance quotes, consider the following:
- Agreed Value: Ensure the insurer offers the exact value you want for your vehicle.
- Usage Limits: Look for any restrictions on mileage or storage.
- Repair Options: Some policies allow you to select your repairer, while others do not.
- Additional Perks: Roadside assistance, European cover, and no-claims bonus are added perks to consider.
- Excess Fees: Check the excess fees and whether they apply to different types of claims.
