What is the difference between market value and agreed value ?
Most of the insurance on standard vehicles is on a market value basis to allow for depreciation wear and tear to the vehicle. The market value being the price you would expect to obtain for your car in the open cash market. With classic cars this market value at the time the policy is processed becomes fixed in advance and thus agreed. In the event of a claim that is a total loss you are paid this fixed agreed value. At the moment we do not have an insurer who will cover the cost of recreation. Many owners who pay garages to rebuild their cars can spend more than the finished car is worth on the open market.
