Your coverage does not mean what you think it does. Here are some definitions. They are as international as the insurance industry is.

ACTUAL CASH VALUE: This is normal insurance. If you have this coverage, you'll get somewhere between wholesale and retail blue book in the event of a total loss.

STATED VALUE: This is the classic 3-card Monty of the insurance world. Pays either the stated value, or actual cash value, whichever is LOWER. Have to be careful here, because you may pay a premium for the higher value you think it's worth, but still get only actual cash value in terms of a total loss. On total loss, it is WORSE than actual cash value because you might unwittingly set a value lower than what they would have paid without it. They will NEVER pay you more because of it, only less.

AGREED VALUE The ultimate for a classic or collector car. Initially based on the INSURER'S detailed appraisal of your car, then the "agreed value" is the sum you'll receive in the event of a total loss.....no research, no questions, no arguments. Needs to be updated every three years. Your premium will be adjusted to reflect that potential loss. Note that if you enhance the value significantly with restoration or whatever you should report that fact to the insurance company. In most cases it won't increase the premium, but it will ensure you're compensated for it in the event of a total loss.

Determining Value:  How do you and the insurance company determine the value of your car? You can hire an appraiser, some classic car insurance companies don't think it's necessary but I do. If you have a stock original vehicle (one to which you haven't done any work or added anything), there are many resource guides and pricing books. Beware, these don't work well for Morgans.

If you've made improvements or additions to the car that you believe increase its value, you MUST hire an appraiser to support your claim and the best one to hire is a Morgan Dealer. Owners restoring cars should keep detailed lists of the work performed and receipts for all parts and labour. Some companies will  require appraisals at the owner's expense to establish the agreed value, while others may not. Get a paid for third party appraisal regardless.  Redo the appraisal after any major work or improvement or upon the advice of  the appraiser.

A few companies offers it calls an  "inflation guard," which automatically increases the vehicle's value by 2 percent each quarter, up to 8 percent each year, at no extra cost. If, however, your policy doesn't have automatic increases,  you should review your policy and your car's value on an annual basis
to be sure you have enough coverage

Qualifications: Both you and your car may have to meet certain qualifications to buy this type of insurance. Driver record and age, car storage facilities, alternate vehicles for "everyday" driving might be required. These factors will vary from insurer to insurer

Coverage and costs are better and your portion of any accident can be negligible. Yet, classic car insurance is much less expensive than standard car insurance because of the restrictions. The liability portion of your vintage auto policy may cost less than $100 per year incident and the deductible or your contribution to any incident will be minimal.. That's because your insurer knows you won't be driving the car very much and, when you do, you'll be driving it very carefully.

TOTAL LOSS

Normally defined when the cost of repairs exceeds 65% of insurer's valuation of the vehicle after the accident. (Morgans are not "too far gone" when they require only 65% of their lowest possible value to repair.)

SALVAGE CLAUSE

The insurance company will force you to scrap the car if the damages are more than 65% of the wholesale value. Some policies may allow you to keep the damaged car. However the insurers will report it to the government as severely accidented and unroadworthy and require you to surrender the registration plates prior to their payment. With the loss of the original chassis number, the authenticity of the car becomes suspect to buyers and a large portion of its resale value is gone.

This problem can be negotiated if you are aware of it. See eMog for further help.