Question: I'm planning to buy a 1956 Ford Thunderbird for $45,000. Do I need to get a professional appraisal of the value of the car before I can get classic car insurance on it?

Answer: Probably not, unless the car has some very special and unique features that affect its value. An appraisal will cost you a couple hundred bucks, but obviously, you already know the car's exact value right now--the price you're about to pay for it.

Agreed Value and your Classic Car Insurance

Most specialty classic car insurers offer "Agreed Value Coverage"--sometimes called Stated Value Insurance--meaning you and the company agree on the value of the car and that's what the insurance policy will pay if the car becomes a total loss. In this case, it will be easy to arrive at a valuation.

If you plan to make any major renovations or do any custom work on the car in the future, you should keep good records of time and money invested, including all receipts for parts and labor, and have the Agreed Value of your classic car insurance adjusted accordingly.