Compare Best Car Insurance Companies That Offer Agreed Value [2023]

Agreed value on car insurance means your provider agrees to pay you a specific amount for your covered item. The best car insurance companies that offer agreed value policies are Geico and Hagerty.

If you own a classic or collectible car, keep reading to discover tips to help you buy car insurance from companies that offer agreed value policies for your specialty vehicle.

After learning about car insurance quotes from companies that offer agreed value, remember to enter your ZIP code into our free comparison tool above to receive rates from the top providers near you.

What are the top car insurance companies that offer agreed value?

If you own an exotic, classic, or collectible car, you may want an agreed value car insurance policy. Agreed value car insurance policies typically cost more than traditional insurance.

Some companies even offer restoration coverage as a policy add-on if you’re restoring an older vehicle.

You may use a car insurance company that doesn’t offer agreed value policies itself but instead partners with a classic car provider.

For example, of the national providers, Geico Car Insurance Company is the best car insurance company that offers agreed value policies to drivers at a low cost. However, those policies are technically underwritten by Assurant.

Similarly, Nationwide Car Insurance Company and Allstate Car Insurance Company work with Hagerty for classic car policies.

Hagerty Car Insurance Company is one of the top classic car insurance companies, especially for drivers needing agreed value policies.

Other ​​affordable car insurance companies that offer agreed value insurance include:

• American Collectors Car Insurance Company
• American Family Car Insurance Company
• Grundy Car Insurance Company
• Safeco Car Insurance Company
• State Farm Car Insurance Company

If you’re only finding affordable car insurance companies that don’t offer agreed value, then consider looking into local agencies that specialize in classic car insurance.

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What is agreed value insurance?

Agreed value car insurance policies have a payout amount that both you and the provider agree upon.

So if your vehicle is totaled, you receive the agreed value as your payout instead of the actual cash value (ACV).

To qualify for classic car insurance, drivers usually must be 25 years old with at least ten years of driving experience. However, there are exceptions.

Your driving record must also typically be clean for three to five years.

Qualifications for the car include age, conditions, use, and storage. Classic cars are often 10-20 years old, whereas antique cars are 25. But newer exotic and luxury vehicles may also qualify.

Typically, you appraise your classic or collectible vehicle and submit the results to your provider. Your insurance company may also perform an assessment.

However, some classic car companies already have set values for various vehicles.

You may need agreed value pricing for your car if it does not have a traditional value representing the car’s worth.

Similarly, fixing a classic car usually requires specialized mechanics, which standard insurance policies likely do not cover. Also, most cars lose value year after year, but some rare vehicles increase in value over time.

The cost of your agreed value policy varies heavily depending on the kind of car you own and how you use it.

For example, most providers put a cap on how many miles you can drive your car annually if you use an agreed value policy.

Therefore, expect agreed value car insurance for a daily driver to be more expensive.

But if you only use your car for pleasure or car shows, this may help lower the cost of your policy.

Finally, how you store the car matters, some companies do not write agreed value policies for cars parked in public locations.

So if you keep getting car insurance quotes from companies that don’t offer agreed value, it may be because of where you park your car. So keep it in a private, secure garage to earn the lowest possible rates.

What is the difference between agreed value and actual cash value?

Now that you know what agreed value means, how does it differ from the actual cash value or even stated value?

One significant difference between agreed value insurance versus replacement costs is when the value is determined.

Actual cash value or ACV is the amount your car is worth after factoring in age and depreciation. Most traditional car insurance policies use ACV.

Typically, it’s calculated at the time a claim is filed and excludes damage costs.

So while your agreed value never changes unless the car is reevaluated, a car’s ACV does shift with time.

According to the law experts at Nolo, you can negotiate your car’s actual cash value with your provider if you disagree with the adjustor’s assessment, but the process can be difficult.

So, you’re better off establishing what the car is worth ahead of time for classic cars.

Finally, stated value insurance policies payout whatever is cheapest between the ACV and agreed value of a vehicle. You can even purchase agreed value insurance for things besides your car, including jewelry, antiques, or commercial property.

But remember, if you buy car insurance from companies that don’t offer agreed value policies but need one, never hesitate to switch providers. Just secure your new policy before canceling your old one to avoid a coverage lapse.

Car Insurance Companies That Offer Agreed Value: The Bottom Line

Many providers offer agreed value car insurance to customers who drive classic, collectible, or exotic luxury cars.

If you keep getting car insurance rates from companies that don’t offer agreed value policies, then you may want to consider specialty classic or collectible car insurance companies.

Save money on your classic car insurance by earning safe driver, low-mileage, multi-car, and multi-policy discounts.

If you’re a member of a car club, you could also achieve rate reductions. Also, consider increasing your deductibles.

Now that you’ve compared car insurance rates from companies that offer agreed value, you can compare quotes from the best providers near you by entering your ZIP code into our free tool below.

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