06/02/2026
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Agreed vs Stated vs Actual Cash Value
American Collectors Insurance offers Agreed Value Coverage. When placing coverage for your collector car clients, it's important to choose a policy that best protects the value of the vehicle. While these terms are often used interchangeably, they function very differently at the time of a loss.
1. Agreed Value Coverage (Best for Collector Vehicles)
With Agreed Value Coverage, the policyholder and insurance provider agree on the vehicle's value upfront, based on it's condition and current market values. An Agreed Value policy ensures, the owner of the vehicle receives the full insured amount of the vehicle, (less any applicable deductible) in the event of a total loss.
2. Stated Value (Can Create Gaps)
Stated value allows the policyholder to declare the vehicle's value when the policy is written. However, this amount is typically used for rating purposes and does not guarantee payout.
In the event of a total loss, the insurance carrier will evaluate the vehicle and pay the lesser of:
· The stated value, or
The actual cash value (ACV) at the time of the loss
This can result in a lower payout than the client expects.
3. Actual Cash Value (Standard Coverage)
Actual cash value represents the vehicle's value at the time of the loss.
During a claim, the insurer determines the cost to repair or replace the vehicle and then applies a deduction for depreciation based on age, condition, and wear. The payout reflects the depreciated value at the time of loss.
For clients with collector cars, placing coverage on an Agreed Value policy, which American Collectors Insurance offers, is the strongest protection their classic or specialty vehicle.
