What is the difference between stated amount coverage on an automobile or motorcycle and Agreed Value coverage?
Agreed Amount or Agreed Value This is the only policy form guaranteeing you in writing what amount you will receive if your “Collector Car” is stolen or totaled during the policy period. Note there is no “Actual Cash Value” clause in the form. The “Agreed Amount” form states the insurance company will pay you, the lesser of: 1. The “Agreed Amount,” or 2. The cost to repair the covered auto, not to exceed the “Agreed Amount”. The “Agreed Amount” should be reviewed carefully with your agent before the policy is issued. Your agent and you must agree together upon the “Agreed Amount” before the policy is issued. The “Agreed Amount” should represent the true market value of the car at the time the policy is written. If the market value changes during the policy period, the “Agreed Amount” can be changed by endorsement. Before policy renewal each year the “Agreed Amount” should be changed, if necessary, to reflect current market value. Stated Amount or Stated Value This form of policy is fre
