Stated value is an insurance industry term for the price your car would be expected to command on the open market in its current state. This is not the same as the trade-in value or the price that a particular buyer, such as a collector, would pay for your car.

Market value is the most common method chosen by car owners for determining the sum that their vehicle is insured for. The market value of your car is determined by your insurer using industry guides. The valuation is one factor used to determine the premium on your policy. Other factors include your residential zipcode, whether the car is garaged or parked on the street, and any vehicle security features.



If your car is declared a total loss by your insurance company due to it being stolen and unrecovered or written off, your insurer will reimburse you the market value of the vehicle at the time that the loss occurred. The exact amount is determined at that time using industry guidelines, with allowances made for the condition of your vehicle and any approved modifications or additions made.

This amount may be significantly different from the "market value" detailed on your insurance policy, as most vehicles depreciate in value as time goes by. In other words, "market value" is a floating value based on current market conditions and industry guidelines. As well as the actual condition of your vehicle, the factors that determine "market value" for insurance purposes are closely related to the factors that determine the resale value of your vehicle on the open market