By Jack Ploszay · October 8, 2026
With agreed value coverage, the insurer and owner agree on the vehicle's value up front, and that amount is what is paid on a covered total loss. Insurers set or approve the value using their own process, and an independent appraisal can support the figure, especially for high-value or unusual vehicles.
Key takeaways
- Agreed value fixes the payout amount in advance.
- Stated value and actual cash value work differently.
- Requirements for documentation vary by insurer.
- An independent appraisal helps on high-value, unusual or recently appreciated cars.
Agreed value, stated value and actual cash value
Agreed value means the insurer and owner settle on a value when the policy is written, and that amount applies to a covered total loss. Stated value is an amount the owner declares, but the insurer may pay less. Actual cash value is the market value at the time of loss, often less than an owner expects on a collector car.
How the value is set
Insurers use their own guidance, owner-supplied documentation and sometimes comparable sales. Some require photos and records, and some ask for an independent appraisal above certain values or for unusual vehicles. Requirements differ, so ask your insurer what it accepts.
When an appraisal helps
When the car is rare or high value. When it has appreciated since the policy was written. When it was restored or modified, so the guide value understates it. When ownership or the value could be questioned after a loss. A written independent appraisal gives the insurer evidence and gives the owner a record.
Keeping the value current
Collector values change. Review the agreed value periodically and update it when the market moves, because an old figure can leave an owner underinsured.
What the appraisal should include
Identification and VIN, photographs, condition, documented comparable sales, an effective date and a signed statement of independence. These are the pieces an underwriter or adjuster wants to see.
Questions to ask your insurer
Do you require an appraisal and how recent? Who do you accept? Do you require USPAP compliance? How often must the value be updated? What happens at claim time if the vehicle is a total loss? Do you pay agreed value or something lower?
Get the answers in writing, because the policy language, not the conversation, controls.
Why values go stale
Collector markets move. A value set several years ago may be well above or below today's market. Underinsuring leaves a gap at claim time, and overinsuring can mean paying premiums for coverage you cannot collect.
Updating every few years, or after significant changes in the market or the vehicle, is a common practice.
What makes an appraisal useful to an insurer
Clear identification of the vehicle, good photos, documented condition, comparable sales, an effective date and an independent author. Veride does not buy or sell the vehicles it values and takes no contingent fees, which supports independence.
Requirements vary by insurer, so confirm before ordering.
Frequently asked questions
Does every agreed value policy need an appraisal?
No. Many do not require one for typical vehicles, but some insurers ask for one on higher-value or unusual cars.
Can an appraisal increase my agreed value?
It can support a higher figure, but the insurer decides what it will agree to.
Does agreed value mean the insurer pays that amount?
Generally in a total loss, subject to the policy terms. Read your policy.
How often should I update an agreed value?
Many owners review it every one to three years or when the market changes significantly.
Related reading
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