Agreed Value Insurance vs. Stated Value Insurance What's the Difference?

Classic, Collectible and Custom Vehicles need to be properly insured.


Classic, Collectible and Custom automobiles have stable values and appreciate over time. Because the values are stable, an "Agreed Value" insurance policy should be obtained to protect your collectible automobiles. Under an "Agreed Value" policy, if your car is stolen or totaled, you will receive the agreed value listed in writing on your auto policy.

Most auto policies issued by major insurance companies are for "Stated Value" coverage. With a Stated Value insurance policy the insurance company decides what your Classic, Collectible or Custom car is worth at the time of the loss. Some collector policies sell Stated Value as if they were the same as "Agreed Value". It is not! Stated Value policies pay the Stated Value or the Actual Cash Value of an insured vehicle ... whichever is less.

Only Agreed Value Insurance coverage is without hidden gotchas. If your car is stolen or totaled, you will receive the Value Agreed to when you insured your Classic, Collectible or Custom car.

For custom and show cars the replacement value can greatly exceed the fair market value or actual cash value, for these vehicles it's very important to have agreed value insurance. The replacement value of your street rod or show car needs to include the cost of a donor car, the cost of materials and pay for the hours of labor to replicate these custom built vehicles. An appraisal is not only important for getting an agreed value policy, but in the event of a claim, having your Auto Appraisal Network Appraisal will be invaluable for establishing the value of your car with the at fault party.

Agreed Value Insurance = Classic, Collectible or Custom Cars
Stated Value Insurance = Daily Drivers