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

Standard auto insurance pays actual cash value which depreciates based on age and mileage. For a 1967 Mustang fastback restored at a cost of $60,000, the ACV based on its age would be a small fraction of that. Agreed value means you and the carrier set the vehicle's insured value at policy inception based on an appraisal or market documentation. If the car is totaled or stolen, you receive the full agreed amount with no depreciation deduction and no argument about what the car was worth. This is the standard structure for collector auto policies and is why they are structured differently from personal auto.