How Do I Value My Car For Insurance Purposes? 
Insurance companies , for the most part insure your vehicle to it 's `` Actual Cash Value '' -LRB- AVC -RRB- . That is the starting point . Naturally , the newer the vehicle , the more likely that it will have a higher ACV . Some insurance providers are now offering coverage that will actually replace your car at full value should it be severly damaged in an accident so long as the car was aquired new within three years of the loss . Others extend that coverage to offer an amount necessary to buy a similar year make and model at current market value if damaged within 5 - to -7 years of purchase . Specialty providers for classic or antique cars , boats and motorcycles will insure the vehcle to it 's appraised value at the start so in many cases , you will need to obtain an appraisal when you purchase , much the same as when you buy a diamond engagement ring , for example . 