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If I wreck my collector car & it’s totaled, how will I be compensated by my auto insurance policy?

Imagine your classic or collector car as a unique piece of art or a rare collectible item. Regular car insurance policies usually determine the value of your vehicle based on factors like its age, make, model, and general condition. However, these policies might not fully capture the true value of your special car, especially if it’s a classic that has appreciated in worth over time.

Why does it matter?

This is where an “agreed value” insurance policy comes in. Think of it as a personalized agreement between you and the insurance company regarding the value of your car. With this type of policy, you and the insurer mutually decide on the car’s value before any incidents occur. This value is often based on factors such as the car’s rarity, its historical significance, its condition, and any modifications or improvements you’ve made.

The main advantage of an “agreed value” policy is that in the unfortunate event of a total loss, such as theft or irreparable damage, you’ll be compensated based on the agreed value instead of a standard market depreciation calculation. In other words, you’ll receive the amount you both previously decided your car is worth, which can be significantly more than what a regular insurance policy might provide. This helps you avoid potential financial loss if your cherished car’s market value has increased over time.

In conclusion:

To put it simply, an “agreed value” insurance policy offers you a tailored level of protection for your classic or collector car. It ensures that you’re covered for the full value of your prized possession, considering its uniqueness and potential appreciation, rather than relying on standard market valuations that might not accurately reflect its worth. It’s like insuring your car’s special place in your heart and the collector community, giving you peace of mind and confidence that you’ll be properly compensated if the unexpected happens.

Give us a call today so that we can provide you that peace of mind at the very best rates. Get a quote same day by clicking HERE.

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