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

Agreed value pays the full insured amount with no depreciation or argument about market value if the vehicle is totaled or stolen. A 1967 Mustang fastback restored at a cost of $60,000 would receive the full $60,000 under an agreed value policy. Standard auto ACV would pay a fraction of that based on the car's age. Agreed value is the standard structure for collector auto policies and is one of the primary reasons to use a collector policy rather than standard auto.