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Does the agreed value change at renewal on a classic car policy?

Published 29 October 2026 · 5 min read

Not by itself. An agreed value is the amount printed on your schedule, so it does not depreciate during the policy year, and it does not rise with the market either. At renewal it is yours to review: Hagerty's policy wording treats each renewal as a new contract, so the figure you accept then is the most the insurer will pay on a total loss for the next period.

Our guide to agreed value against market value explains how the figure is set. This one answers the questions owners ask when the renewal arrives: does the number move, does it fall, and what should be on the schedule before you pay.

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Does an agreed value depreciate during the policy year?

No. On a total loss the insurer pays the agreed amount, less any excess and any salvage you keep (Hagerty UK, "Do I need agreed value?", 27 January 2026). A standard market value policy works the other way: it pays what the car is worth when the claim is made, which Hagerty says can reflect depreciation, and classics do not tend to follow that course.

The flip side is that the figure does not follow a rising market either. The Financial Ombudsman Service looked at a complaint where the agreed value was £8,000 and, according to the owner, the other driver's insurer had put the car's market value at £13,900. The ombudsman did not uphold the complaint: the policy "doesn't allow for an increased value to be paid unless it had been agreed in advance" (decision DRN-4286575, 20 December 2023). The owner had been paid the £8,000 on the schedule.

So the risk with an agreed value is not that it shrinks. It is that it stays where it was set while the car moves.

What does a renewal do to the figure?

Hagerty's policy wording says each renewal "represents a new contract of insurance", covering the period on your renewal schedule (Hagerty Classic Car Policy wording, February 2025). That is why the review belongs at renewal and not in the middle of the year.

The pages we read describe the review as your move. Hagerty says you have the option to review the valuation when you renew, because the classic market can go up or down. Lancaster Insurance says that if you are happy the value has not changed, you can carry the agreed valuation over (Lancaster, 29 July 2025). Neither page says the insurer moves the number for you, so the figure you are insured for is the one printed on the schedule.

Does your schedule say "agreed" or "market"?

This is the check that decided a recent complaint. A classic car owner renewed in 2024 and 2025 on a policy that paid on market value, not agreed value. Each year's documents defined both terms. Market value, they said, is "the value of the vehicle at the time of the claim in line with current market trends", which "could be more or less" than the figure shown. Agreed value meant the maximum payable was the amount on the schedule "regardless of the market value at the time of the loss". The agreed option had been offered for an extra £18 and was not taken. The ombudsman did not uphold the complaint (decision DRN-6120574, February 2026).

The lesson is not about that one policy. It is that a value written on your schedule is not the same as a value agreed, and the word that tells you which one you have is on the certificate of insurance. Read it at every renewal, before you pay.

What evidence keeps the figure agreed?

Under Hagerty's wording the agreed value applies if you give acceptable valuation certificates or photographs within 30 days from the start date of the policy. Without them, a total loss is paid at the lesser of the amount insured and the market value. Because a renewal is a new contract, ask your insurer or broker whether that 30 days runs again when you renew. The wording does not say.

What insurers ask for before they accept a figure is covered in our guide to agreed value evidence for a modified or imported classic.

When is it worth raising the figure?

When the car is worth more than the schedule says. The usual evidence is sold prices for similar cars, receipts for work done and, for a higher or unusual figure, an independent valuation. A price guide gives a typical figure for a model, but your car may not be typical, as price guide against valuation report explains. Write down the date and the source of whatever you send, so the insurer can see how you reached the number.

Whether the premium changes with the figure is for your insurer to say. Ask for the renewal terms at both figures before you decide.

Does the agreed value go up automatically at renewal?

The insurer pages we read describe the review as something you do: Hagerty says you have the option to review the valuation when you renew, and Lancaster says you can carry the valuation over if the value has not changed. Your renewal schedule shows the figure you are insured for, so read it before you pay.

Does an agreed value depreciate during the policy year?

No. An agreed value is the amount shown on your schedule, and on a total loss the insurer pays that amount less any excess. A market value policy is different: it pays what the car is worth at the time of the claim, which can be more or less than the figure you stated.

Do I need to send new photographs or a valuation every year?

It depends on the insurer. Hagerty's policy wording ties the agreed value to certificates or photographs supplied within 30 days of the start date, and says each renewal is a new contract. Whether that 30 days runs again at renewal is not stated in the wording we read, so ask your insurer or broker.