Agreed Value vs Stated Value: Classic Car Insurance Explained

Most people who own a classic car have a special connection to their vehicle. That’s why it’s important to fully understand how your insurance will respond if something happens. Two common types of classic car insurance are Agreed Value Insurance and Stated Value Insurance. While they may sound similar, they work very differently.

What Is Agreed Value Insurance?

Agreed Value Insurance is often used for classic, collectible, or rare vehicles. With this policy:

• You and the insurance company agree upfront on the value of your vehicle.

• If your car is totaled or stolen, you receive the full agreed-upon amount — regardless of the current market value.

• There’s no depreciation or appraisal required at the time of loss.

✅ This gives you peace of mind knowing that your full investment is protected, even if the market fluctuates.

Example:
If you and your insurer agree your 1967 Corvette is worth $75,000, that’s the amount you’ll receive if it’s a total loss.

What Is Stated Value Insurance?

Stated Value Insurance also allows you to list a value for your car, but there’s a major difference:

• You declare a value for your vehicle.

• At claim time, the insurance company pays either the stated value or the actual market value — whichever is less.

• If the market value has declined, your payout may be reduced.

✅ Stated Value policies typically cost less, but they offer less certainty at claim time.

Example:
You state your car is worth $75,000. If the insurance company determines its market value is only $65,000 after a loss, you may only receive $65,000.

Key Differences: Agreed Value vs Stated Value

Which Type of Policy Is Right for You?

Choosing between Agreed Value and Stated Value depends on:

• The rarity and value of your car

• How much protection you want

• Your budget

• How much you want to avoid market fluctuations

✅ Agreed Value is ideal if you want full protection with no surprises.
✅ Stated Value may work for more stable or lower-value cars when budget is a concern.

Speak with an Expert Insurance Agent

Understanding these differences is crucial to making sure your valuable car is fully protected. Our experienced team can:

• Review your current policy

• Compare multiple carriers

• Help you select the right coverage for your classic car

Not sure how your car is currently covered? Contact us for a deep dive and make sure you have the protection you want.

Contact Information:
Michael Vereecke, CLCS
President/Agent @ Customers First Insurance Group
586-221-6870