Agreed Value vs. Stated Value Insurance (2023)

Sometimes, standard policies that rely on actual cash value (ACV) for insured items don’t provide enough coverage. People with high-value classic cars, expensive jewelry, or art may prefer agreed value or stated value insurance. In the event of a total loss, agreed value policies set a specific payout, while stated value policies let people decide on the replacement cost.

Owning or renting a car comes with ample financial and safety responsibility. Finding an auto insurance provider that adequately meets your insurance needs for an affordable price takes away some of the stress of taking care of your car. With Insurify’s car insurance comparison tool, users easily compare monthly quotes from dozens of top auto insurance companies.

How are agreed value insurance and stated value insurance different from standard insurance?

When purchasing standard insurance, people simply provide necessary car, home, or personal item details to their insurance provider to learn the type of coverage available for purchase, as well as the expected insurance costs. With agreed value and stated value insurance, the value of the insured item is provided by the individual and used by the insurer to decide the payout.

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What is agreed value insurance?

In an agreed value insurance policy, a policyholder and an insurance company agree on a fixed value for an insured item. This agreed-upon value will be paid out by the insurance company to the individual if the insured item or vehicle is lost, stolen, or totaled and a claim is filed. The decision for the guaranteed value occurs prior to finalizing the insurance policy.

With agreed value coverage, the insured item will not face value depreciation over time because the agreed value does not rely on the ACV or market value of an item—a factor that appeals to policyholders. Still, insurance companies do have a significant say in determining the valuation. These policies tend to skew on the more expensive side due to the appraised value.

How do the policyholder and insurance company decide on the agreed value of an item?

To determine the guaranteed value, the item in consideration for insurance may need to be appraised prior to when the policy is written out and at the time of each policy renewal. Having an appraisal for a collector car, classic vehicle, antique, jewelry, art, or other item allows the insurance agent to better understand the value of the item a policyholder wants to insure.

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What is stated value insurance?

Policyholders with stated value insurance inform their insurance company of the worth of the insured item, but the individual likely will not receive the full value in replacement costs if they experience a total loss of their item. Instead, the insurance company decides on the amount the individual will be paid during the claims process, which likely won’t match the stated amount.

Generally speaking, stated value insurance costs less than agreed value insurance. Because the insurance company doesn’t necessarily adhere to the provided or appraised value of your vehicle, collectible, or another item, this type of policy typically results in smaller replacement cost payouts in the event of a total loss and an insurance claim.

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How do the policyholder and insurance company decide on the stated value of an item?

Stated value coverage is commonly used for classic car insurance. Though the policyholder provides how much the classic car or other item is worth, the insurance company makes the final decision in determining the replacement cost of the insured item. The company looks at the stated value and actual cash value and awards the policyholder with the lesser of the values.

Which companies offer agreed value and stated value insurance?

Specialty insurers that provide agreed value and stated value auto insurance policies for unique vehicles like collector or classic cars include Hagerty, American Collectors, Grundy, American Modern, and more. Though these companies may vary from standard insurance providers, their specialty focus means they excel in executing insurance under the umbrella of their focus area.

Some of the nation’s major insurance companies also provide car insurance policies for classic and other collector car owners that account for a car’s determined valuation. Well-known companies offering some form of agreed value, stated value, or classic car insurance include GEICO, Safeco, State Farm, Allstate, American Family, Liberty Mutual, USAA, and others.

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How to Find Cheap Auto Insurance

Searching for the perfect car insurance policy often feels overwhelming. Insurify provides users with a convenient car insurance comparison tool that allows them to compare dozens of national and regional providers in a matter of minutes. By entering some cursory information about yourself, your driving profile, and vehicle type, you can view applicable insurance quotes.

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