I insured my Supra Turbo for $60,000 in 2023, thinking that was plenty. Fast forward to 2026, a tree falls on it, and the total loss check is $60,000—exactly enough to buy half of a replacement because the market spiked to $120,000 while I wasn’t looking.
Key Takeaways
- Agreed Value is Static: It does not move unless you move it.
- Inflation Guard: Some policies include a percentage increase (e.g., 4% per year), but this rarely keeps up with “Viral” car spikes (like JDM classics).
- Market Value Protection: A few top-tier policies pay up to 150% of the insured value if the market has jumped.
- The “Underinsured” Trap: If you are insured for 50% of value, some carriers will only pay 50% of a partial loss (Co-Insurance).
The “Why” (The Trap): The Renewal Autopilot
You pay the renewal bill every year without reading it. The value stays at $60,000.
Meanwhile, a movie comes out, or an auction result goes viral, and your car doubles in value.
The insurer is happy to keep your premium low and your coverage lower. It is your responsibility to prove value, not theirs.
[IMAGE: Chart showing the price of a MK4 Supra vs. a flat insurance limit line over 5 years]
The Investigation: I Called Them
I looked for policies that help you keep up with inflation.
1. Grundy (MVP)
- Feature: “Inflation Guard.”
- How it works: They increase the Agreed Value by 4% (or set amount) every renewal automatically.
- Verdict: Good for steady growth cars, insufficient for spikes.
2. Hagerty
- Feature: Valuation Tools.
- How it works: They email you: “Your car’s value may have increased.” They don’t change the policy automatically, but they prompt you to do it.
- Verdict: You have to be proactive.
3. Chubb / AIG (High Net Worth)
- Feature: “Market Value” clause.
- How it works: They pay the Agreed Value OR the Market Value just prior to loss (up to 150% of the limit).
- Verdict: The ultimate safety net. If you forgot to update, they still pay the higher market price.
Comparison Table
| Feature | Standard Agreed Value | Inflation Guard | Market Value Extension (Chubb) |
| Payout | Limit Listed | Limit + 4%/yr | Market Value (up to 150%) |
| Cost | Base | Slight Increase | Premium Pricing |
| Safety | Low | Medium | High |
Step-by-Step Action Plan
- Audit Annually: Set a calendar reminder for your renewal date. Go to Hagerty Valuation Tool or Bring a Trailer results. Check your car’s price.
- Call to Increase: If the value is up $10k, call and increase it. The premium difference is usually
20−20−50. - Ask for “Market Extension”: Ask your broker: “Do I have a buffer clause if the value spikes?” If not, consider switching to a carrier that offers it.
- Document Condition: High values require high condition. Keep recent photos to prove your car was a “Condition 1” example, not a beater.
FAQ Section
Does increasing value raise my premium?
Yes, but proportionally. It is usually very cheap (approx $0.50 per $100 of coverage).
Can I decrease the value if the market drops?
Yes. Save money if the bubble bursts.
What if I modify the car (e.g., add a supercharger)?
You MUST report this. Modifications increase value but also risk. If you don’t report it, they can deny coverage for “Material Misrepresentation.”