Key takeaways
- Stated value: you list a value, but many policies pay the lesser of that amount or the vehicle’s actual cash value after a total loss.
- Agreed value is the amount the insurer accepts up front, and a covered total loss pays it, minus any deductible.
- A higher stated value doesn’t always mean a bigger check. Read the valuation wording.
- Keep photos, receipts and records so you can support the car’s value either way.
Stated value car insurance sounds like a promise: you write down what your car is worth, and that’s what you get if it’s totaled. On many policies it doesn’t work that way. This guide explains what stated value usually means, how it differs from agreed value and actual cash value, and when it’s worth asking about another option. If you own a classic or collector car, start with our agreed value car insurance guide.
Not sure how your car is valued?
Send us your declarations page and we’ll read the valuation wording with you. Call (603) 431-4020.
What stated value usually means
With stated value, you list an amount for the vehicle on the policy. That number is often used two ways: to help price the physical damage coverage, and as the most the insurer will pay for a total loss. When the car is totaled, many stated value policies pay the lesser of the stated amount or the actual cash value at the time of the loss, minus any deductible.
So if you list $40,000 and the insurer decides the car was worth $31,000 right before the loss, the settlement is based on $31,000. If the car was worth more than $40,000, the stated amount caps it. Some policies word this differently, which is why the exact language matters.
Stated value vs. agreed value vs. actual cash value
| Valuation | When the value is set | What a covered total loss pays |
|---|---|---|
| Actual cash value | After the loss | What the car was worth just before the loss, after depreciation, minus the deductible |
| Stated value | You list an amount up front | Often the lesser of the stated amount or actual cash value, minus the deductible |
| Agreed value | You and the insurer agree up front | The agreed amount, minus the deductible |
Policy wording varies by carrier and program. Treat this table as a starting point and confirm the details on any policy you’re considering.
Who runs into stated value
Most everyday cars are insured at actual cash value on a standard auto policy. Stated value tends to come up for vehicles that are harder to price from general market data, for example:
- Trucks and SUVs with significant aftermarket work, such as lift kits, custom wheels or upgraded equipment
- Older vehicles in unusually good condition that don’t meet a collector program’s rules
- Custom builds and modified cars without reliable price guides
- Specialty vehicles that are used too often to qualify for collector coverage
If your vehicle is driven occasionally, stored securely and kept in collector condition, an agreed value collector car policy may be worth comparing. For vintage pickups, see classic truck insurance.
Custom equipment is its own question
Standard auto policies often limit coverage for aftermarket parts and equipment unless it’s listed or added by endorsement. Whatever valuation your policy uses, tell us about upgrades so we can check whether they’re covered.
How to protect yourself with a stated value policy
- Read the valuation wording. Look for “lesser of” language in the limit of liability section.
- Don’t overstate the value. A higher number may cost more without raising what a total loss pays.
- Keep records. Dated photos, receipts for parts and labor, and recent sales of similar vehicles help support actual cash value after a loss.
- Review it each year. Update the amount after major work, and check it at renewal.
- Ask about agreed value. If the car qualifies, compare the two before you renew.
Stated value questions in New England
We hear stated value questions from drivers across New Hampshire, Massachusetts, Maine and Connecticut. The basic idea is the same everywhere, but carriers, programs and eligibility rules differ by state, and so does the auto insurance each state requires you to carry. Long winters, salt on the roads and seasonal storage also shape which option fits. We’ll compare what’s available where you live and garage the vehicle. For newer luxury and performance cars, see high-value auto insurance in New Hampshire.
How we help
We’re a family-owned independent agency founded in 2005, with 200+ years of combined experience on our team and access to 40+ carriers. We work for you, not one insurance company, so we can compare how different policies value your vehicle and explain the trade-offs in plain language. We are New Hampshire’s highest-rated agency on Google, with 1,000+ Google reviews and over 2,000 testimonials, and about 90% of our quotes go out within 24 hours.
What to send us: your current declarations page, the vehicle’s year, make, model and VIN, photos, a list of upgrades with receipts, and how often you drive it.
Compare stated value and agreed value options
We’ll check how your vehicle is valued and what else fits. Call (603) 431-4020.
Frequently asked questions
What is stated value car insurance?
Stated value is a way of valuing a vehicle where you list an amount on the policy. On many policies, a covered total loss pays the lesser of that stated amount or the vehicle’s actual cash value at the time of the loss, minus any deductible. Wording varies, so read how your policy defines it.
Is stated value the same as agreed value?
No. With agreed value, the insurer accepts the car’s value when the policy is written, and a covered total loss pays that amount, minus any deductible. With stated value, the listed amount often works as a ceiling, and the insurer may still pay less if the actual cash value turns out to be lower.
Why would anyone choose stated value?
Stated value is sometimes offered for vehicles that don’t fit a standard auto policy or a collector program, such as a heavily customized truck or an older vehicle with unusual equipment. It can cap what the insurer pays, but it doesn’t guarantee that amount. We’ll tell you when an agreed value option is worth comparing.
Does a higher stated value mean a bigger payout?
Not necessarily. If the policy pays the lesser of the stated amount or actual cash value, listing a higher number won’t raise the payout above what the car is worth after the loss. It can, however, affect what you pay for the coverage, so it’s worth checking the wording before raising it.
Can I switch from stated value to agreed value?
Often, if the vehicle qualifies. Collector programs usually use agreed value but have their own rules on age, use, storage and mileage. We compare options from multiple carriers and explain which ones fit your vehicle and how you drive it.
How do I check which valuation my policy uses?
Look at your declarations page and the policy’s valuation or limit of liability section for the words agreed value, stated amount or actual cash value. If it’s unclear, send us your declarations page and we’ll walk through it with you.
Related guides
- Agreed Value Car Insurance for Collector Cars
- Classic and Collector Car Insurance
- Modified Car Insurance: Hot Rods, Street Rods and Kit Cars
- Antique vs. Classic Car Insurance
- Classic Truck Insurance for Vintage Pickups
Next step: request a quote or call (603) 431-4020.