There are three ways car insurance companies pay out when a classic car is declared totaled : Actual Cash Value, Agreed Amount Value and Stated Amount Value.

Actual Cash Value: This is the way 99% of all standard car insurance policies are written. This means that the claim adjuster for the insurance company will determine, by using a variety of factors, how much your car is actually worth. The amount is generally closer to its wholesale value.

Agreed Amount Value: The insurance company will pay the agreed amount value or the cost to repair the classic car, not to exceed the agreed amount. The agreed amount value is determined by the insured and the insurance company representative when the policy is written.  It should reflect the true market value (which can increase) of the classic car. The agreed amount value can be adjusted by endorsement if it changes during the policy period.

Stated Amount Value: This is often used in classic car policies. Stated amount means that the insurance company will pay the lesser of the stated amount or the repair cost not to exceed the stated amount or the actual cash value.

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