You misjudge the Corkscrew at Laguna Seca. Your $70,000 Corvette is now a crumpled ball of fiberglass and aluminum. You’re not worried about repairs—the car is gone. You’re worried about the check. Will the insurer pay what the car was worth ($70,000), or what their depreciation algorithm says a wrecked Chevy is worth ($45,000)?
Key Takeaways
- ACV is the enemy: Standard auto insurance uses “Actual Cash Value” (depreciated value). Track insurance uses “Agreed Value.”
- You set the price: With track insurance, you declare the value upfront. If you say it’s $70k and pay the premium for $70k, they pay $70k (minus deductible).
- Mods must be included: If you have $20k in mods, you must add that to the Agreed Value before the crash.
- The Salvage Buyback: In a total loss, you might want to keep the wreck (for the engine/parts). Know the buyback price rules.
The “Why” (The Trap): Depreciation vs. Agreement
In a standard total loss claim, the adjuster looks at “market value.” In 2026, the used car market is volatile.
However, in track insurance, the contract is simple: Agreed Value.
The Clause:
“In the event of a total loss, we will pay the Agreed Value shown on the Declarations Page, less any applicable deductible.”
This eliminates the fight. There is no negotiation after the crash. The negotiation happens when you buy the policy.
The Investigation: I Tested the Valuation Process
I went through the quote process for a highly modified 2020 Porsche GT4 to see how high they would let me value it.
The Car
- Market Value (Stock): $110,000
- Mods: $30,000 (Suspension, Brakes, Cage)
- Total Replacement Cost: $140,000
Hagerty
I typed in $140,000.
- Result: Approved instantly. The premium adjusted upward, but they didn’t ask for receipts upfront. They assume you know what your car is worth. If I typed $200k, they likely would have asked for an appraisal.
Lockton Motorsports
I typed in $140,000.
- Result: Approved. They included a reminder that I need to be able to justify the value if asked (keep receipts!), but for the quote, they accepted my number.
OnTrack Insurance
- Result: Similar experience. They emphasize that the “Agreed Value” acts as the cap. If you undervalue the car at $100k to save $20 on the premium, you only get $100k.
Comparison Table: Valuation and Payout
| Feature | Standard Auto (If they covered it) | Track Insurance (Agreed Value) |
| Payout Basis | Actual Cash Value (Depreciated) | Agreed Value (Contracted) |
| Negotiation | High (You fight the adjuster) | None (Value set at purchase) |
| Modifications | Pennies on the dollar | Dollar for Dollar (If included in value) |
| Deductible | $500 | 10-15% of Insured Value |
[IMAGE: Bar chart comparing a $50k payout from ACV vs a $75k payout from Agreed Value on the same car]
Step-by-Step Action Plan
- Calculate Replacement Cost: Do not just look at KBB. Add up the cost of the car + tax + shipping + every single modification installed.
- Input the Full Number: When the website asks “Vehicle Value,” put the full replacement cost.
- Check the Premium Delta: Increasing coverage from $50k to $60k might only cost $30 extra. It is worth it.
- Save Your Receipts: Scan your invoices for the mods. If you have a total loss, the insurer may ask for proof of the mods to ensure you aren’t committing fraud, even with Agreed Value.
FAQ
What if I undervalue my car?
If your car is worth $50k and you insure it for $30k, and you total it, you get $30k (minus deductible). You just lost $20k plus the deductible. Do not cheap out.
Can I keep the car after a total loss?
Usually, yes. The insurer will deduct the “salvage value” from your payout. If the wreck is worth $5k in scrap, and your payout is $50k, they give you $45k and the car.
Does the deductible come out of the check?
Yes. If you insured the car for $50,000 and have a 10% deductible ($5,000), you would receive a check for $45,000.