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Posting this because the two terms being discussed, stated value and agreed value, might sound as if they are identical, they're not.
Agreed Value:
Definition:
Agreed value is a type of insurance where you and your insurer agree on a specific value for your vehicle at the start of the policy, which remains fixed throughout the policy period.
Claim Payout:
In the event of a total loss, you'll receive the agreed-upon value, minus any deductible.
Common Use:
Often used for classic, collector, or modified cars where the value can be difficult to determine using traditional methods.
Higher premiums:
Agreed value policies usually have higher premiums because the insurer is taking on more risk by agreeing to pay out a specific amount.
Stated Value:
Definition: Stated value is a policy where you, as the policyholder, determine the value of your vehicle and state it to the insurer.
Claim Payout: The insurance company can choose to pay the stated value or the actual cash value (ACV), whichever is less.
Common Use: Also used for insuring classic, collector, or modified cars.
Lower premiums: Stated value policies tend to have slightly lower premiums compared to agreed value, but the potential payout after a claim is less certain.
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