In a nutshell...What's the difference between stated value and agreed amount? I need to go back and check what mine is...
Stated value = You say your car is worth $30,000 and pay premiums based on $30,000 value, then you have an accident or total loss and the insurance company only pays you $3,000 to replace your beautifully restored classic because they say, "oh, that's an old car, depreciated value is $3,000."
Agreed value = You declare the value and the insurance company 'agrees' with you that it's a reasonable value, then you have an accident or total loss and the insurance company pays you $30,000 (the agreed upon value) to replace your beautifully restored classic.
The numbers above are only for example-sake. Your values or experience may be different, but I have a friend was in a 2 year battle with his insurance company over their payout of less than 20% of his car's actual value because he had a stated value policy, which is the same type of policy you have on your daily drivers.
I have my classics insured with Hagerty for several reasons...
- I have multiple friends who have had EXCELLENT claims experiences with Hagerty. Great customer service and follow-through, and their cars were fixed properly. They may cost a bit more, but no amount of savings is worth it if the claims experience is a nightmare or they don't pay out to fix your car properly.
- The ability to occasionally drive to work. Many classic car policies expressly forbid you from driving your car to work, and some limit your vehicle usage ONLY to club events or parades - no 'sunday drives' allowed.
- Premiums are based on the mileage that you choose! Some of the less expensive classic car insurance companies have ridiculously low absolute mileage limits. Hagerty asks you how many miles you intend to put on the vehicle and rates the premium accordingly.
And, Hagerty has coverage for that too! You can add track day coverage as needed.The only situation in which my Mustang is not covered is when I drive it on a track.