Agreed value car insurance provides a customized coverage amount based on the agreed-upon value of your vehicle determined by you and your insurer—but this increased coverage comes at a higher cost.

Agreed value car insurance offers a fixed maximum payout and is ideal for high-value, modified, or
classic car coverage
.
Agreed value car insurance coverage must be purchased through a specialty provider (such as a company for classic or antique cars) and may come with eligibility requirements.
Unlike stated value insurance or standard auto insurance, agreed value policies guarantee the agreed-upon amount regardless of depreciation or market value.

Agreed value car insurance specifies the maximum your insurer will pay out in a claim

Most

car insurance policies

account for factors like age and depreciation, but an agreed value insurance policy ensures a fixed payout on claims regardless of how old your vehicle is or when you bought it.

Agreed value insurance policies set the maximum payout amount before the policy starts

The amount of fixed coverage you receive is determined by the value of your vehicle

For this reason, insurance companies that offer this type of insurance usually require an appraisal of the vehicle and statement of value before starting the policy.

Agreed value car insurance isn’t like other types of auto insurance policies. Since it covers the vehicle’s full value, it’s most frequently used by car owners who have expensive, modified, classic, or antique cars.

Agreed value vs. stated value auto insurance

While stated value insurance shares similarities with agreed value insurance, these policies are not the same thing:

Agreed value insurance: Establishes the maximum pay-out amount based on the agreed-upon value of your car. Any claims filed ensure reimbursement up to the full amount.

Stated value insurance: Covers either the “stated” value of the car or the

actual cash value

(ACV)—whichever costs less. The stated amount is what your car is worth at the time you take out the policy.

In other words, the main difference is that stated value insurance does not ensure a maximum payout. If the stated value of your car exceeds its market value, you may end up receiving a lower payout in the event of a claim.

Of the two, agreed value insurance offers a higher level of protection—making it a safer bet for high-value and collector vehicles.

Not all cars are eligible for agreed value car insurance

Agreed value policies are meant to protect high-value vehicles and they’re not available for every driver on the road. It can also be challenging to find this type of coverage since most car insurance companies that offer agreed value policies are specialized providers.

Even companies that offer agreed value insurance may have strict regulations on this type of policy, including:

Only covering specific makes and models

Only covering low-mileage vehicles (not your daily driver)

Only covering you if you can guarantee vehicle parking in a private and secure location

Agreed value insurance is usually more expensive

An agreed value insurance policy typically costs more than a standard policy.

This is because the payout in agreed value policies is not affected by factors like the age or depreciation of the vehicle. Instead, the coverage is determined based on the mutually agreed-upon value of the car.

In other words, agreed value insurance premiums are more expensive because they cost insurance companies more money.

Given the potential cost implications, it’s worthwhile to take the time to shop for quotes. Insurance rates can vary significantly among different companies, so comparing insurance quotes from multiple insurance providers can help you find the right coverage for the lowest cost.

Should you get an agreed value car insurance policy?

Insuring unique cars can be a worrisome and daunting task—especially when the value of your car is based on something other than traditional market standards. Whether your car has new mods or classic charm, you may see the value more clearly than insurance companies.

If you own a classic car, a heavily modified vehicle, or any other type of high-value ride, then agreed value car insurance can be a great solution for you

If you’d prefer to simply keep your rates low and your vehicle decently protected, you may be better served by a stated-value policy

FAQs

Is agreed value coverage expensive?

Agreed value insurance policies typically cost more than standard auto policies as they ensure a greater amount of protection for high-value vehicles. Unfortunately, there is no “average” cost for agreed value insurance—the fixed amount for your policy is based on the valuation of your vehicle.

If you’re looking for an affordable agreed-value policy, it’s best to get quotes from multiple companies and compare rates. Keep in mind that you may have to call the insurance company or broker directly since this type of policy is not generally advertised.

What is an agreed value car insurance policy used for?

Agreed value car insurance stands apart from other auto insurance policies due to its unique coverage of the vehicle's full value. This type of insurance is commonly chosen by car owners who possess high-value, customized, classic, or collector cars.

Are agreed value and guaranteed value the same thing?

Yes. Agreed value insurance—which is sometimes called guaranteed value insurance—offers a fixed amount of coverage for specialty and collectible vehicles. This sets it apart from more traditional types of insurance coverage that determine payout amounts only when a claim is filed, based on factors like depreciation and market value.

Does agreed value insurance have a deductible?

Yes. If you file a claim with your insurance provider, you’ll need to pay your deductible before the insurance company will pay anything out.

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