Why does collector auto use agreed value instead of actual cash value?

Agreed value means you and the carrier set the insured value at policy inception based on an appraisal. If the car is totaled or stolen, you receive the full agreed amount with no depreciation and no negotiation. Standard auto pays actual cash value which depreciates by age. On a restored classic worth $60,000, ACV might pay a fraction of that. Agreed value is the correct structure for any collector vehicle.