Insurance companies will use one of three different policy forms. They are generally known as "Actual Cash Value", "Stated Value" or "Stated Amount" and "Agreed Value or Agreed Amount". Each of these three forms is different, misunderstood, and frequently misrepresented by insurance agents.
Most collectible automobiles have stable values and slowly appreciate over time. Because the values are stable, an "Agreed Value" insurance policy should be obtained to protect your collectible automobiles. Under an "Agreed Value" policy, if your car is stolen or totaled, you will receive the agreed value listed in writing on your auto policy. Ninety-five per cent of all standard insurance companies do not offer an "Agreed Value" policy.
This form of coverage is typically provided by standard auto policies. The insurance company claims adjuster ultimately decides what your collector car is worth at the time of the loss.
While you may have some input, if you do not agree with the claims adjuster, the insurance company claims adjuster decides the final claims settlement.
If you do not agree with the claims settlement, you may have no alternative but to seek legal action, or, if specified in the policy, arbitration.
Having an auto appraisal or agreed value insurance you will avoid a lot of time and worry about your collectible car.