With guaranteed agreed value car insurance you get compensated for the amount your car is worth, if it’s more than the market value of similar cars.
Agreed value car insurance policies pay out a pre-agreed sum in the event of a total loss.
It’s mainly for cars that are worth more than the average for a similar age model. They pay out an amount you’ve both agreed on for your car if it’s written off or stolen, rather than the average market value for it.
They’re useful for classic cars that have held or increased their value with age, or if you’ve made expensive changes to a modified or kit car. The same applies for classic motorbikes.
Owners of valuable new cars and performance cars might consider a guaranteed value policy too. Some insurers offer a new replacement car service if the car is under 12 months old though, so you might not need it - check your policy details.
Agreed value policies are difficult to find. We checked 363 comprehensive insurance policies on Defaqto, and only 2% offered agreed value cover as standard – a further 8% offered it as an optional extra.
This means that you might need to shop around with individual providers to find the best deal or use a broker – but you can still compare car insurance policies online.
If you’re a member of a classic car owners’ club, or a similar group for enthusiasts, ask about any known agreed value policy insurers you could approach – they might have a club discount or partnership in place.
You know the value of your car better than the insurer, particularly if you’ve done work on it, so if the first quote doesn’t work for you, shop around.
When you take out an agreed value policy, you’ll need to prove your car is worth more than the market value. The evidence you need to provide varies between insurers but usually includes:
Insurers usually specify that you need to take a certain number of pictures of the inside, outside, engine bay and so on
You’ll have to pay for the inspection
As supporting evidence of the vehicle’s value
Agreed value policies are more expensive than market value policies.
They’re less common, meaning less competition between insurers, which keeps premium prices high.
As well as generally being more expensive, if the agreed value is added to a basic policy as an optional extra, it’ll also push up the price of the basic policy too.
You’ll need to weigh up whether your vehicle is unique and valuable enough to warrant taking out an agreed value policy, or if you’d be better off comparing standard market value policies instead.
Last checked 3 June 2021
ONS Crime Survey for England and Wales (CSEW) data for April 2019 to March 2020