Would You Be Happy with a “Fair Price” After a Total Loss?

Let’s not sugar-coat it; watching a classic car go up in smoke, get side-swiped, or even stolen is more than just a financial blow. It’s personal. That smell. That steering wheel. The hours you've put in under the bonnet. You’re not just losing a vehicle; you’re losing a piece of your past.

So imagine going through all that, only to hear the insurer say, “Here’s what it’s worth on paper.” That’s when the difference between market value and insured value suddenly matters; more than most people ever realise.

Market Value vs Agreed Value: What's the Difference?

This is where things get interesting; or messy, depending on how you've set things up.

  • Market value means the going rate; what your car might fetch in a typical sale on any given day
  • Agreed value (also known as insured value) is a figure you and your insurer settle on beforehand

One’s reactive. The other’s protective. With market value, the insurer might check auction listings, dealer sales, and “book” estimates. With agreed value, there’s less guesswork; you’ve already put a stake in the ground.

When Market Value Might Let You Down

Here’s the hard truth. Market value often undervalues classic cars; especially if yours has had:

  • Extensive restoration or customisation
  • Rare original parts or trim
  • Documented history or provenance
  • Emotional or collector interest that isn’t always visible in auction listings

So yes, your Mk1 Escort might be “worth” £6,000 in theory; but what if you've spent £14,000 bringing it back to life? That’s where the sting comes in. The market doesn’t always see the sweat you’ve poured into it.

What Agreed Value Actually Means in Practice

With an agreed value policy, you declare what the car is worth, often backed by photos, receipts, or even a valuation certificate. The insurer accepts that figure; and that’s what they pay out if the car’s written off or stolen.

No back-and-forth. No haggling. No surprise lowball offers when you’re already in bits over the loss.

It might not always be perfect, but it’s usually closer to justice than relying on a vague estimate from someone who’s never driven your car, let alone loved it.

How to Make Sure You’re Covered Properly

  • Document everything; Restoration photos, parts receipts, and service records all help support your valuation
  • Update your value regularly; Classic values move, sometimes fast. Don’t assume last year’s number still holds
  • Get a specialist valuation; Especially if the car’s rare, modified, or particularly well-kept
  • Watch for policy wording; “Agreed value” isn’t the same as “market value with discretion”
  • Don’t overstate; Be honest. You don’t want to overpay for unrealistic figures either

It’s Not Just About the Payout; It’s About Peace of Mind

The right value doesn’t just protect your wallet; it protects your time, your memories, and your decisions. Anyone who's rebuilt a classic knows it's more than just parts and paint. It's Saturday afternoons in the garage. It’s your granddad’s old wrench. It's the smell of warm vinyl and petrol at sunrise.

So when you insure that car, make sure the policy sees the same thing you do. Not just a car. But the story behind it.