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Owning a classic car is a special kind of pride. It’s not just transportation; it’s craftsmanship, history, and nostalgia on four wheels. Protecting that investment means understanding how your insurance values it. The difference between agreed value and actual cash value (ACV) coverage might seem like small print, but it determines how much you’ll get if the unthinkable happens. Bogden Insurance Agency, serving Berlin, CT, explains.
What Actual Cash Value Means
ACV coverage works like most standard auto policies. It pays out based on what your car is worth at the time of the loss: its market value minus depreciation. For a regular vehicle that loses value every year, that makes sense. But for a classic car, it’s often a poor fit. A rare Mustang or vintage Corvette doesn’t depreciate; it appreciates. Under an ACV policy, you could get far less than what your car is worth, even if you’ve invested years of care and restoration.
What Agreed Value Means and Why It Stands Apart
Agreed value coverage takes a different approach. You and your insurer decide on a specific value for your classic car upfront, based on appraisals, restoration records, and current market trends. If the car is totaled or stolen, you receive that full amount. There’s no haggling or depreciation adjustments. It’s designed for vehicles that hold sentimental and collectible value, not just practical worth.
Choosing the Right Fit
Classic car owners in Connecticut often balance pride with caution. If your car is a weekend showpiece, agreed value coverage usually makes the most sense. It gives you predictable protection and peace of mind. ACV might work for older cars with modest value, but it’s rarely enough for something irreplaceable.
A classic car’s worth isn’t just measured in dollars; it’s in time, care, and passion. The right coverage honors that, ensuring your car’s story doesn’t end with an unfair payout. Contact Bogden Insurance Agency, serving Berlin, CT, to learn more.
