Agreed Value vs. Stated Value Car Insurance Policies

Last Updated on December 29, 2025

Agreed value and stated value auto insurance are often mentioned in the same breath—especially for classic, collector, exotic, or modified cars. But they can pay out very differently after a total loss.

In most standard auto policies, your car is insured on an actual cash value (ACV) basis—meaning depreciation is baked in. Specialty policies use agreed value or stated value approaches to handle vehicles that don’t fit normal depreciation curves or have unique build costs.

Here’s what each option means, how claims are typically paid, and how to choose the right one for your situation.

Key Takeaways

• Agreed value coverage sets your car’s value up front with the insurer and is designed to pay that amount after a total loss (subject to policy terms).
• Stated value policies often pay the lesser of the stated amount or the car’s actual cash value (ACV), so the stated number may not be guaranteed at claim time.
• Agreed value is most common for classic, collector, rare, or heavily modified vehicles where depreciation doesn’t reflect real market value.
• Before choosing stated value to save money, read the settlement language carefully so you don’t end up underpaid after a total loss.

Agreed Value vs. Stated Value at a Glance

What Is an Agreed Value Car Insurance Policy?

With an agreed value policy, you and the insurer decide what the vehicle is worth before a loss. If the car is totaled (or stolen and not recovered), the policy is designed to pay that agreed amount, assuming you followed the policy terms.

To set the agreed value, the insurer may request some combination of photos, receipts, build sheets, comparable sales, and sometimes a formal appraisal—especially for rare, highly customized, or high-value vehicles.

Agreed value coverage is most common for classic or collector vehicles, including cars that may appreciate or hold value better than typical daily drivers. It’s also popular if you’re insuring a vehicle with upgrades where you don’t want to argue about depreciation after a claim.

Even with agreed value, insurers may revisit the value at renewal—so it’s smart to review it when you renew the policy, especially if the market changes or you add major modifications.

What Is a Stated Value Car Insurance Policy?

A stated value policy lets you tell the insurer what value to “state” for the vehicle. Many drivers assume that number is guaranteed—but on many forms, it’s not. A common clause is: “the lesser of the stated amount or actual cash value.”

That’s why stated value is frequently used to manage premium rather than maximize payout. For example, you might have a vehicle that could sell for far more than you want to pay premiums on, so you choose a lower stated amount. It can be a cost-control tool, but it can also create a gap if you expect a guaranteed payout.

Stated value policies are often used for specialty situations—like when you’re trying to insure a portion of value on a high-end vehicle you can’t afford to insure at its full market level. Just be clear-eyed about what the policy actually promises to pay.

How Claims Payments Differ

The biggest difference shows up after a total loss:

• Agreed value: designed to pay the amount you and the insurer agreed on (subject to terms and any applicable deductibles).
• Stated value: often pays up to the stated value, but may pay less if the vehicle’s actual cash value is lower.

Example: Your garage burns down and your collector car is destroyed. If your agreed value is $100,000, the policy is designed to pay $100,000. If your stated value is $100,000 but the policy pays “stated value or ACV, whichever is less,” and the insurer determines ACV is $70,000, your payment may be closer to $70,000.

This is why it’s critical to read the settlement language. A stated value number can influence premium, but it doesn’t always lock in what you’ll receive.

Which Insurers Offer Agreed Value?

Agreed value coverage isn’t offered by every insurer, and it’s usually restricted to vehicles that meet eligibility rules (storage, usage, condition, and sometimes a second “daily driver” requirement). Some major insurers don’t write true agreed value for everyday policies, but they may offer endorsements, specialty programs, or refer customers to partner providers.

Specialty carriers are common in the agreed-value space. Two well-known classic-car insurers include Grundy and Hagerty.

If you already have an auto policy and want to add specialty protection, you may also see agreed value (or similar) options discussed among auto insurance add-ons—though availability depends on your carrier and state.

Pros and Cons of Stated Value Policies

Pros of Stated Value Car Insurance

• Lower premium potential if you state a value below what you’d otherwise insure.
• Simpler setup in some cases (less documentation than agreed value).

Cons of Stated Value Car Insurance

• Payout may be less than the stated value if the policy settles on “stated amount or ACV, whichever is less.”
• Easy to misunderstand, which can lead to disappointment when you file a claim.

Pros and Cons of Agreed Value Policies

Pros of Agreed Value Car Insurance

• Predictable total-loss payout based on the agreed amount (subject to terms and deductibles).
• Better fit for collector and specialty vehicles, especially when depreciation doesn’t tell the full story.

Cons of Agreed Value Car Insurance

• Premiums may be higher than stated value or basic ACV coverage.
• Eligibility rules and documentation (garage storage, limited mileage, appraisals/photos/receipts, etc.).

How to Choose Between Agreed Value and Stated Value

The right choice depends on your goal:

• Choose agreed value if you want the most certainty about what you’ll receive after a total loss—especially for a true collector vehicle, a rare model, or a car with significant restoration/mod costs.
• Consider stated value if you’re primarily trying to control premium and you understand the settlement language may cap payment at ACV.
• If you just need reliable protection on a daily driver, start with strong liability coverage and consider other ways to save on auto insurance before relying on stated value to cut cost.

A Note on Classic and Collector Cars

If you’re insuring a classic or collector vehicle, agreed value is often the cleaner fit—because the whole point is to avoid depreciation disputes. Just be sure you can meet any restrictions (storage and usage) and keep documentation (photos, receipts, appraisals) updated as the vehicle changes.

FAQs on Agreed Value vs. Stated Value Car Insurance

Final Takeaway

Agreed value is about locking in a payout amount up front for a specialty vehicle. Stated value is often about setting a declared amount that may influence premium, but the claim settlement may still fall back to ACV. If the goal is avoiding surprises after a total loss, agreed value is usually the safer bet—when you qualify for it.