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Guide · updated 2026-10-09
Agreed value vs market value: classic car insurance explained
Short answer
With agreed value, you and the insurer settle on a figure up front, and that's what's paid if the car is written off. With market value, the insurer works out the value after the loss. Classic cars are hard to price, so most collectors choose agreed value and review it every year.
How to set an agreed value
- Use recent sold prices for the same model and condition, not asking prices
- Add a valuation from a club or specialist for rare cars
- Keep photos, receipts and history to back it up
- Review it each renewal
Watch for
- Limited-use or kilometre caps on cheaper classic policies
- Storage requirements (garaged, locked)
- Under-insuring to save on premium
Sources
General information only, not legal, tax or financial advice. Rules change; check the official source.
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