A person who owns a classic car should purchase an agreed value insurance policy, in which the car owner and the insurance agent agree on the value of the car and write it into policy as the amount paid in case of a total loss, notes HowStuffWorks. Classic car owners who want lower premiums can choose stated value insurance policies, states About.com.
Many classic car owners purchase regular insurance policies for their classic cars, notes HowStuffWorks. This can be a costly mistake, as regular policies account for depreciation in determining value, when many classic cars actually rise in value over time. Agreed value policies are often cheaper than regular policies, as insurance brokers are aware of the care that people take with their classic cars, and that they rarely drive these cars long distances. Agreed value insurance plans also include standard liability, collision and comprehensive car insurance.
Cars must meet standards, such as age or rarity, that make them classics in order to qualify for agreed value insurance policies, notes HowStuffWorks. People are limited by agreed value insurance plans, in that they generally cannot drive their vehicles more than 5,000 miles per year, they must own another vehicle for daily use, and they must store the classic vehicles in locked garages.
Classic car owners can also choose stated value insurance, in which a value that may be less than the car is worth is written into the policy. The payout on stated value policies is lower, but the monthly premiums are also less, states About.com.