Don't find out after an accident happens that you didn't have the right coverage!

As the weather improves and old man winter begins to relinquish its grip on much of the country, our classic cars are more likely to stretch their legs and take to the streets and show fields.

For many, it will be a season of great memories, but even those of us that take every precaution to keep our steeds safe sometimes accidents, damage & theft happen.

Unfortunately for many owners, after the fact is a terrible way to learn that the coverage you thought you had doesn't cover your loss.

Here are three of the most important terms you need to know regarding your classic car insurance:

1. Actual cash value
This is what your car is worth today according to your insurance adjuster, based on his own sources prior to your cars damage or theft. This is what the settlement amount will be based from. (not your appraisal)

2. Stated value
Simply put, stated value allows you to tell the insurance company what you feel your vehicle is worth, thus also determining how much your premiums may be. Stated value does not determine how much you will get if you suffer a total loss. Often times stated value includes a term that allows the insurance company to "pay the stated value or actual cash value, whichever is less." check your policy!

3. Agreed value
If you’re a classic car owner, this is most likely the policy for you.  In layman's terms, in the event of a total loss, the insurance company pays you the amount both of you agreed your vehicle is worth before you ever paid a premium. Period.

The value of your vehicle does not depreciate over the course of your coverage. If your policy says anything other that this, consider contacting your insurer.

There are many quality classic car insurers to choose from. Protect your pride & joy with coverage that’s right for you.

Photos and text courtesy of JP Emerson and JPEmerson.com, automotive writer and host of the JP Emerson Show podcast.  

About the Author:  JP Emerson is an award winning author & journalist whose bylines appeared in many of the most popular automotive magazines in the country. JP covers classic muscle cars and the people who own them with real stories from real owners relating everything from ownership, car shows, music, road trips and what everyone has in common regardless of brand.