Not everyone can just walk into an insurance company and take out an agreed value car insurance. To do so successfully, there are a number of requirements you and your car must meet. The following are some of the factors that could make you fail to meet the requirements.

  1. Your Type of Car

There are certain types of cars that an insurance company would agree to insure under an agreed value. These cars are those whose worth cannot be easily derived on the market. Examples of these cars include classic, antique, customized, vintage, or restored cars.

NB: Many people use the term classic cars as an umbrella term for antique, customized, or vintage cars. Though the definition of what a classic car should be varies greatly, this term describes automobiles manufactured between 1915 and1948. However, some other people categorize all cars that have been produced at least 30 years ago to be classic. Thus, the probability of you getting an agreed value car insurance might depend on what your insurance company deems a classic car.

  1. Regularity of Use

Some insurance companies might refuse to hand out an agreed value car insurance on a classic car if you intend to use it regularly. While your contract may allow you to use the car for occasional use such as pleasure rides, it will be voided if you use it for work commutes, school runs, or regular general use. Thus, you may be only allowed to drive the car to certain events like exhibitions, parades, or classic club car activities.

Conditions That Could Warrant the Need for an Agreed Value Insurance

Getting agreed value insurance is fairly more expensive than the regular car insurance available. Still, many people prefer to opt for it. Why? Could be for any of the following reason

  • The freedom to claim any amount for the vehicle you are insuring, knowing that you’ll get the full amount in the event of a total loss.
  • The agreed-upon value doesn’t change. That is, it isn’t affected by the depreciation of the insured vehicle.
  • Insuring classic cars based on market value most times provides low value for the car. When you know that your car is worth much more, you might want to opt for an agreed value
  • Getting agreed value for modified cars becomes necessary when the modifications have made the car more valuable than its usual market valuation.
  • Sometimes, agreed-upon values are best for insuring imported cars whose worth might be hard to determine in your own country.
  • There are also cases where people take out loans to purchase a car. an agreed-upon value can insure both the cost of the actual vehicle and any amount left on the loan should something happen to the car before you finish paying back the loan.

Agreed value doesn’t always necessarily have to be higher than the market value. Thus, someone looking to save on premium by paying lower can ask to insure his car on a value that is lower than the market value.


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