This form of policy is frequently and easily misunderstood. It is often used on collector car policies. Most insurance agents typically represent it as being the same as "Agreed Amount." It is not! The "Stated Amount" form states the insurance company will pay the lesser of:
1. The Stated Amount or
2. The cost to repair the covered auto not to exceed the "Stated Amount" or
3. The "Actual Cash Value"
The "Stated Amount" helps determine the premium cost. It does not guarantee you a settlement amount that reflects the value of the car when a loss occurs. The "Actual Cash Value" language allows the claims adjuster to settle your loss for an amount less than the "Stated Amount." Most insurance agents are unaware of this detail. These agents are unaware of the actual policy language and will insist if your collector car is stolen or totaled, you will receive the stated value.
If the average value listed in NADAguides isn