What is the difference between stated and agreed amount policies?
Stated Amount- a total loss is adjusted to the lesser of: (1) the amount shown on the insurance policy, (2) the actual current value of property, or (3) the amount necessary to repair or replace the property. Stated amount coverage accounts for any depreciation which might occur during the policy term. Newer vehicles which cannot yet be considered classic autos based on age are generally written on a stated amount basis. Agreed Value- the amount the insured and company agree to at the policy inception date. That is, if a vehicle is written at a $10,000 value, $10,000 will be paid in the event of a total loss.
