Agreed valuation


Let’s start with the technical definition of agreed value: “This is a contract under which the insurer agrees to pay a stated amount in the event of a total loss of the property insured without any adjustment for depreciation or appreciation“. This means that whatever value is agreed will be paid to you in the event of your vehicle being declared a write off or stolen and not recovered.


Normally a private car policy is designed to pay out the current ‘market value‘ of your car, which can be open to interpretation of course and will be based on the current cost of replacement for that particular make and model. However, agreed value insurance is designed differently compared to market value. This means at the inception of our agreed value insurance policy your vehicle value will be confirmed at a specified amount and you will receive a separate certificate confirming this (with our multi car insurance, your agreed value is noted on the policy schedule), in addition to your certificate of motor insurance.


As enthusiasts we all know how classic car values can fluctuate depending on market trends and with this in mind it is important to make sure that you keep a close eye on how your vehicle is performing in the current market. An agreed value insurance policy should give you the option to make necessary adjustments to the value of your classic car when it comes to appreciation. It is important to make sure that if the worst happens you can at least recover financially from the loss and replace your car.


We will also include salvage retention as part of your agreed value insurance policy so that in the event of a *total loss you will have the option to “buy back” your car to repair or use for parts. After all keeping the classic car scene alive for us all to enjoy is one of our priorities.

If you have any FAQ’s on agreed value insurance that you would like answered, feel free to email us on