I think you nailed it about how insurance companies tend to undervalue older cars, especially when it comes to UMPD. It’s honestly kind of wild how little they care about the actual condition or uniqueness of a car—just straight to the book value, no matter what you’ve put into it. I’ve been through that myself with an older Civic that had a bunch of rare JDM parts. When I got rear-ended, the payout didn’t even come close to covering what I’d invested, and I’d documented everything. They just shrugged and pointed at the “market value.”
I agree that agreed value coverage can feel like overkill for a daily driver, but there’s a nuance there. If you’re driving something that’s appreciating or has sentimental value—or even just hard-to-find parts—it’s worth at least running the numbers. Sometimes the premium isn’t as high as people expect, especially if you have a clean record and store the car securely. But yeah, if it’s just a commuter and you’re not fussed about every detail, probably not worth it.
One thing I’d add: some policies have sneaky exclusions around modifications or aftermarket parts. Even if you list them, they’ll sometimes cap the payout or require extra documentation. I learned this the hard way after swapping out my wheels and suspension—my insurer only covered “factory equivalent” replacements unless I had receipts and photos on file. It’s tedious but probably worth doing if you’ve put any money into mods.
I haven’t had to file a claim on my current car (knock on wood), but after my last experience, I keep every receipt and take photos whenever I change anything significant. It’s a pain, but better than arguing with an adjuster who thinks your car is just another beater.
It really does come down to how much hassle you’re willing to deal with if something happens. If you’re attached to your Mustang or have put in work that isn’t easily replaced, agreed value gives some peace of mind. Otherwise, yeah... maybe just stick with standard coverage and hope for the best.
One thing I’d add: some policies have sneaky exclusions around modifications or aftermarket parts.
Yep, this gets folks every time. If you’ve got anything non-stock, snap pics and stash those receipts—otherwise, “factory equivalent” is all you’ll get. It’s tedious, but trust me, adjusters love their fine print.