Agreed Value Car Insurance Explained (vs Stated and Actual Cash Value)
Agreed value car insurance is coverage where you and the insurer agree on the car’s value when the policy starts, and that full amount is paid if the car is totaled or stolen, usually with no deductible and no depreciation. It is most common for classic, collector, antique, exotic and heavily modified cars. Standard auto policies instead pay actual cash value (ACV), which is the car’s market value at the time of the loss after depreciation. Stated value is a third option that sounds similar but lets the insurer pay the lesser of the stated amount or actual cash value.
Agreed Value Vs. Stated Value Vs. Actual Cash Value
| Feature | Agreed Value | Stated Value | Actual Cash Value (ACV) |
|---|---|---|---|
| What is paid for a total loss | The agreed amount | The lesser of stated value or ACV | Market value at time of loss |
| Depreciation applied? | No | Yes (through ACV comparison) | Yes |
| Typical use | Classic, collector, exotic, custom cars | Older or modified cars on some standard policies | Most everyday cars |
| Appraisal required? | Usually | Sometimes | No |
| Usage restrictions | Often (mileage, storage, not a daily driver) | Sometimes | None |
| Protection level | Highest and most predictable | Can disappoint | Standard |
How Agreed Value Insurance Works
- You and the insurer agree on the value, often backed by a professional appraisal, receipts for restoration and modifications, and recent photos.
- The agreed value is written on the policy.
- If the car is totaled or stolen, the insurer pays that amount, usually without subtracting depreciation and often without a deductible for a total loss.
- Partial damage is repaired, often with the option to use specialty shops and original or correct parts.
- You review the value at renewal and increase it if the market value rises. Some policies include an automatic inflation guard.
Example: Agreed Value Vs. ACV
Say you own a restored 1969 muscle car. You and your insurer agree it is worth $60,000. If it is destroyed in a garage fire:
- Agreed value policy: pays $60,000.
- Standard ACV policy: may pay only what the insurer’s valuation system says a similar car sells for, which could be far less if the insurer does not recognize the restoration quality.
- Stated value policy at $60,000: pays the lesser of $60,000 or the ACV, so if the ACV is $45,000, you receive $45,000.
Who Needs Agreed Value Coverage?
- Classic and antique car owners (typically vehicles 20 to 25 years or older)
- Collector cars that hold or gain value
- Exotic and limited-production cars
- Restomods and heavily modified vehicles with expensive upgrades
- Vintage trucks and motorcycles
- Owners of rare cars that insurer valuation tools cannot price accurately
Typical Requirements for Agreed Value Policies
- Appraisal or documentation of value
- Limited mileage: often annual limits such as 2,500, 5,000 or 7,500 miles, or unlimited “pleasure use” plans at higher cost
- Secure storage: a locked garage, carport or storage unit
- Not a daily driver: you usually need another vehicle for everyday use
- Good driving record and minimum age for drivers
- Condition standards: the car must be in good or restored condition, not a project car (though some insurers offer project car coverage)
Proper storage matters for both insurance and preservation. See our car storage guide for how to protect a vehicle that sits for long periods.
Does Agreed Value Insurance Cost More?
Not necessarily. Classic car policies with agreed value are often cheaper than standard coverage because the cars are driven less and usually cared for carefully. Adding agreed value to a regular daily driver through a standard insurer, where offered, can increase premiums. Costs depend on the car’s value, where it is stored, how much you drive, and your driving record.
Can You Get Agreed Value on a Regular Car?
Most standard insurers pay actual cash value on everyday cars and do not offer agreed value. For a newer car, other coverages protect against depreciation instead: gap insurance covers the difference between ACV and your loan balance, and new car replacement coverage pays for a new car of the same make and model if yours is totaled within the first year or two. To understand how quickly an ordinary car loses value, try our car depreciation calculator.
How to Set the Right Agreed Value
- Get a professional appraisal from a qualified classic car appraiser
- Keep receipts for parts, restoration and modifications
- Take detailed photos of the exterior, interior, engine bay and undercarriage
- Track auction results and sales of comparable cars
- Review the value every year and update it if market prices rise
For everyday cars, you can check market value with trade-in tools. Our guide on car trade-in value explains how those numbers are calculated.
How to Get Agreed Value Coverage
Specialty classic car insurers commonly offer agreed value policies, and some standard insurers sell classic car coverage too. Compare several providers on mileage limits, storage rules, deductibles, spare parts coverage, roadside assistance for trailers and flatbed towing. If you switch, our guide on how to switch car insurance explains how to avoid a gap.
Not insurance advice: Policy terms, eligibility and definitions of agreed value, stated value and actual cash value vary by insurer and state. Read the policy wording carefully, especially the settlement clause for a total loss.
Related guides: Car depreciation calculator · Car storage guide · How to switch car insurance
Agreed Value Insurance FAQs
It is coverage where you and the insurer agree on the car’s value when the policy begins. If the car is totaled or stolen, the insurer pays that agreed amount without depreciation.
Owners of classic, collector, antique, exotic and heavily modified cars, whose value may not be accurately reflected by standard valuation tools.
Usually not from standard insurers. For newer daily drivers, gap insurance or new car replacement coverage are the common ways to protect against depreciation.
Most insurers require an appraisal or strong documentation, such as receipts and photos, to set the agreed value.
