Insurance and Appreciation Clause

[Richardnew]

An Appreciation Clause is something you might have to inquire about when you renew your classic car policy. It only happens with an Agreed Value insurance contract.

Some companies refer to this as an inflation guard. The agreed value automatically goes up 2% every quarter that your policy stays in effect. There is normally a cap on the total. This can vary from 4% to 8%. With inflation guard your classic car policy increases the vehicle’s value quarterly. This is done as compensation for how classic cars increase in value over time.

What most companies won’t tell you is that when your policy is renewed the value reverts back to the Agreed Value contract. That is also the time when you might want to consider raising the value should the market have gone up on your car.

This same increased value feature applies if your car is undergoing a restoration and is unregistered. Most companies will do an automatic 10% increase because they assume your car is going to gain value as it gets closer to completion. That's assumes that you have an Under Restoration policy.

Also keep in mind that most of the time you’re not dealing with an insurance company. You’re usually dealing with a broker who places you with an insurance company. Hagerty for instance in not an insurance company. They’re simply an insurance broker.

Richard Newton
Under Restoration Insurance

[ETexSpeedo]

Good point.

One of the deals regarding Hagarty as far as I can tell, they don't try to beat the insured or the repairer up during the claim process. They put the car owner first.

[Richardnew]

Keep in mind that Hagerty is not an insurance company. That's a good thing.

Hagerty is an insurance broker. In the case of an accident it's their responsibility to represent you during the claims process.

Richard Newton
Insurance is Complicated