Three terms on your car insurance policy that decide what you are paid after a total loss, plus the other "values" you will run into.
Most standard auto policies pay actual cash value if your car is totaled. In plain terms, it is what it would cost to replace your car with a similar one, in similar condition and with similar mileage, on the day of the loss. Insurers usually estimate it from comparable vehicles for sale or recently sold in your market, then adjust for the differences.
Because ACV is an estimate made after the loss, it is the figure people most often dispute. See our guide on how to dispute a total loss offer if you are in that spot.
With a stated value policy, you tell the insurer what you think the car is worth and the premium is set accordingly. It sounds like a guarantee, but it usually is not. Under many stated value policies the insurer pays the lesser of the stated value or the actual cash value, which makes the stated value a ceiling rather than a promise. Read the claims wording to see exactly how your policy treats it.
With an agreed value policy, you and the insurer settle on a value up front and write it into the policy. If the car is a total loss, that amount is what the policy is built to pay, subject to its other terms and your deductible, if one applies. Agreed value is common on collector and enthusiast vehicle policies.
Insurers typically want evidence before they agree to a number, such as photos, records and an appraisal. They may also attach conditions, such as limited use, secure storage or mileage limits. Because the market moves, the agreed value should be reviewed regularly, or you can end up insured for less than the car is now worth.
| Who sets the number | What it usually means in a total loss | Often used for | |
|---|---|---|---|
| Actual cash value | The insurer, after the loss | Market value at the time of loss, minus depreciation and condition adjustments | Everyday vehicles on standard policies |
| Stated value | You, when you buy the policy | Often the lesser of the stated value or ACV, so it works as a cap | Some specialty and collector policies |
| Agreed value | You and the insurer, before any loss | The agreed figure, subject to policy terms | Collector, classic, exotic and high-value vehicles |
For a daily driver, actual cash value is usually what is offered and is often enough. For a car that is hard to replace, such as a classic, a collectible or an exotic, agreed value protects you from an after-the-fact argument about what the car was worth. Stated value is worth a close read: confirm in writing whether the insurer pays the stated amount or only caps the payment at it.
Whichever you choose, ask your agent what the insurer needs to set or update the value, and whether it accepts an independent appraisal. Our guide on whether insurers accept an online appraisal covers what to ask.
An independent appraisal gives you documented evidence of what your car is worth, which is what an agreed value is built on. Insurance appraisals start at $395 as a Virtual Appraisal, and the exact flat price, which depends on the vehicle, is shown before you pay. A second value conclusion can be added for +$95 when you need a different value definition. If you order an annual update within 12 months for the same vehicle, it is 50% of the original Virtual price. See how much a car appraisal costs for the full breakdown.
No. Agreed value is a figure both you and the insurer have accepted, so it is what the policy is designed to pay. Stated value is the figure you declare, and many policies still pay the lesser of it or the actual cash value. The policy wording decides.
Not necessarily. Agreed value fixes the amount the policy values the car at, but deductibles, exclusions and other terms still apply. Ask your agent how your policy handles it.
Many insurers ask for a fresh valuation every few years, and the market can move faster than that, especially for collector and exotic cars. An annual review is a sensible habit. Our annual update is priced at 50% of the original Virtual price when ordered within 12 months.
Many do, but each insurer has its own rules. Some want specific forms, an in-person inspection or an approved appraiser. Ask before you order.
Ask for the valuation report in writing, check it against real comparable sales and send documented corrections. Our total loss dispute guide walks through the steps.
This guide is general information, not legal or insurance advice. Aprazio is not a law firm or an insurance adjuster, and rules and deadlines vary by state and by policy. Check your own policy and your state's rules, and speak with an attorney if you need legal advice.
How to dispute a total loss offer · Will insurers accept an online appraisal? · How much does a car appraisal cost?