“Exotic” vehicles are typically less than 15 years old, but nevertheless are already beginning to appreciate in value.
The agreed value of your exotic car is a value that both you and the insurance company underwriters can agree on.
Using photographs, receipts, repair documents, and other information, both parties come to an agreement that the car is currently worth a certain dollar amount, and should be covered for a maximum of that amount in the event the car is totaled.
The agreed value is different from the actual cash value, which is based on the age, mileage, and overall condition of the vehicle as well as other factors, including depreciation.
The reason agreed value is important for an antique or collector car is that you are the only one who really understands how much you have invested in your vehicle. It takes into consideration the amount of time and money you have spent restoring the car, as well as how much you might charge if you sell it.
Normally, insurance carriers are willing to offer you the amount of coverage you desire; however, the greater the coverage, the more expensive your premium will be.
When you are in an auto accident and are considered the party “at fault,” liability car insurance pays the other parties in the accident when they have been hurt or injured.
Liability coverage will also pay for the damage to someone else’s if you are deemed responsible.
When your vehicle has been damaged in a collision, or if it rolls over in an accident, collision coverage pays to repair your vehicle or replace it.