deal because they get to pay you based onwhat they determine is your car’s actual cash value— if it’s less than the stated amount, they’ll pay you based on the actual cash value instead. Actual cash value coverage is the most common kind of coverage in regular car insurance policies. It looks at what
your car was worth right before the accident. The insurance company will pay you this value, although your deductible will be taken out of the payment. My preference for clients with collectible cars is to go with agreedvalue coverage , which means you’ll get payment for what your car is worth at the time of the accident, including
PRO TIP: SALVAGED VS. UNREPAIRABLE CARS Salvaged cars are not the same as unrepairable cars. The latter cannot be fixed but can be sold for scrap or parts.
coverage for whatever improvements you’ve done to make the car worth more. When you get this coverage, you’ll explain the improvements to your insurer by providing documentations, including receipts, photographs, and appraisals, which will illustrate your vehicle’s true worth as opposed to book value. If you do this, be sure you’ve got detailed photographs on hand and that your most recent appraisal is in a safe place. And as far as your appraisals go, it’s important to keep those up-to-date as well to ensure you get the most money in case your car is damaged. SALVAGED CARS First, what constitutes a “salvaged car?” It’s a car that’s been
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