As a member of America’s Finest City, you may be asking yourself: What is the finest insurance for my vehicle? Your daily, go-to car is likely depreciating in value with every outing. But custom or restored vehicle is a likely a different story. Its value is probably increasing, in which case you want different car insurance that takes that into account. Perhaps you’ve spent hundreds of hours and thousands of dollars restoring and modifying your ride. We'll document all that work and place a value on it—Then you have documented, certified proof that you can take to an San Diego area insurers for a quote for the actual value, and get the coverage you need!
The Difference Between Agreed Value Insurance and Stated Value Insurance
Classic, Collectible and Custom Vehicles need to be properly insured
Classic, Collectible and Custom automobiles typically have stable values that appreciate over time. Because the values are stable, an "Agreed Value" insurance policy should be obtained to protect your collectible automobiles. The agreed value is an amount which has been agreed upon by your insurance company based on your car's make, model, year and documented customizations. Agreed value policies ensure that, should you ever have to make a claim in the event of a total loss, the sum of pay-out will be based on your policy as the “agreed value”, and not just the fair market value.
Most auto policies issued by major insurance companies are for "stated value" coverage. Stated value determines how the insurance company rates your vehicle, but doesn’t necessarily determine how much they will actually pay you if your vehicle gets totaled. The fine print in a stated value policy is usually worded in a way that allows them to pay out the stated value amount or the actual cash value, whichever is lower.
Owners of collector vehicles should consider agreed value policies and take take to not get the two confused. It’s a good idea to verify the type of coverage you have now to avoid an unfortunate situation in the future.
Because appraisals are required for agreed value policies, coverage is without any hidden “gotchas”. If your car is stolen or totaled, you will receive the value agreed to when you your policy was written.
For customs and show cars, the replacement value can greatly exceed the fair market value, or actual cash value, for these vehicles. That’s why it's very important to have agreed value insurance. The replacement value of your street rod or show car needs to include the cost of a donor car, the cost of materials and pay for the hours of labor to replicate these custom built vehicles. An appraisal is not only important for getting an agreed value policy, but in the event of a claim, having an appraisal from Auto Appraisal Network of San Diego will be invaluable for establishing the value of your vehicle with the at-fault party.
Agreed Value Insurance: For classics, collector vehicles or custom cars
Stated Value Insurance: For daily drivers