ACV coverage is what insures most everyday cars and pays out a depreciated book value in the event of a claim; the older a car is on an ACV policy, the less value it has normally. The insurance company claims adjuster ultimately decides what your collector car is worth at the time of the loss. 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.

A Stated Amount policy normally states the insurance company will pay the lesser of:

1. The Stated Amount or
2. The cost to repair the covered auto not to exceed the "Stated Amount" or
3. The "Actual Cash Value

An Agreed Amount policy on a classic car usually states the insurance company will pay you, the lesser of:

1. The "Agreed Amount," or
2. The cost to repair the covered auto, not to exceed the "Agreed Amount".

With an Agreed Amount policy you and your agent must agree together upon the agreed amount before the policy is issued. This agreed amount should represent the true market value of the car at the time the policy is written. If the market value changes during the policy period, the "Agreed Amount" can be changed by endorsement.

No antique vehicle can be insured at actual cash value (ACV) because it is not within the classification of an antique vehicle. For example, a true 1967 Chevy Corvette that has been kept by a single owner and driven the standard mileage would be the real basis for any ACV calculations, it would not be a basis for a collector or antique vehicle. That is the purpose for a stated amount or agreed value policy, so you can get indemnified (protect against loss or damage) for the stated value. Agreed value policies do not depreciate the vehicle value in the event of a total loss.

When you use condition as a factor then it becomes subjective and companies have to use a non-subjective basis for ACV calculations. You said, “…this model based on the condition and going prices…” The condition of a vehicle usually is not a factor for ACV except for any damage that is not calculated when looking at like models.

The ways in which insurance companies determine the actual cash value of a vehicle vary in their methods. The typical way ACV is determined is by comparing your vehicle to local sales of the same model car in similar condition and with similar mileage, but antiques, classic cars, and refurbished models cannot use ACV, they have to have a stated or agreed amount and your premium is based upon that to get the stated amount.