I watched my friend’s $80,000 Sprinter burn to the ground on the side of the highway due to an electrical short. He was devastated but relieved he had “Full Coverage.” Then the check arrived: $32,000. The insurance company paid him the Kelley Blue Book value of a 2021 cargo van with 80,000 miles. They paid $0 for the cabinets, the Victron system, the heater, or the labor.
Key Takeaways
- ACV is the Default: Standard auto policies pay “Actual Cash Value” (Market value of the base vehicle). They do not see a camper; they see a used plumbing van.
- Agreed Value is Mandatory: You must have a policy where the value is agreed upon upfront (e.g., “$85,000”).
- Stated Amount ≠ Agreed Value: “Stated Amount” sets a maximum payout, but the insurer can still pay less if they think the market value is lower. Avoid this.
- Keep Your Receipts: Even with Agreed Value, carriers audit the value at inception. If you can’t prove you spent the money, they won’t agree to the number.
The “Why” (The Trap)
The trap is the “Aftermarket Parts Exclusion.”
In a standard auto policy, coverage for “custom parts and equipment” is usually capped at $1,000 or $5,000. A van build is essentially $40,000 of “custom parts.”
When you buy the policy online and enter the VIN, the system prices the risk based on a hollow metal box. If you don’t specifically intervene to change the valuation method, you are paying to insure a hollow metal box.
The Investigation (My Analysis of 3 Carriers)
I tried to insure a self-built van worth $90,000 (Van cost: $45k, Build cost: $45k).
Progressive
- The Trap: Online, they ask “Price of vehicle.” If you type $90,000, they might quote you, but the fine print says they pay “Lesser of ACV or Stated Amount.”
- The Fix: You have to get a specific “Agreed Value” endorsement, which usually requires speaking to an underwriter and submitting a Bill of Sale or appraisal.
Roamly
- The Winner: They are built for this.
- The Experience: They accepted my self-declared value of $90,000. They asked for a breakdown (Vehicle cost + Build cost). They wrote the policy as “Agreed Value.” If it burns, I get $90,000.
FCIS (Broker)
- The Pro: They work with carriers like Nationwide and Allied.
- The Method: They required a professional appraisal (cost ~$400) before binding coverage. It was a hassle, but it guarantees the value is locked in stone legally.
[IMAGE: Comparison chart showing a check for $35k (ACV) vs a check for $90k (Agreed Value)]
Comparison Table
| Feature | Actual Cash Value (ACV) | Stated Amount | Agreed Value |
| Definition | Depreciated Market Value | Cap on Payout (can pay less) | Guaranteed Fixed Payout |
| Depreciation? | Yes (Massive) | Yes | No |
| Best For | Daily Driver Cars | Classic Cars (sometimes) | RVs & DIY Builds |
| Premium Cost | Lowest | Medium | Highest (~20% more) |
Step-by-Step Action Plan
- Check Your Dec Page: Look at the “Physical Damage” section. Does it say “ACV,” “Stated Amount,” or “Agreed Value”? If it says ACV, you are exposed.
- Organize Receipts: Create a spreadsheet. List every screw, board, and battery. Scan the receipts.
- Get an Appraisal: If you built it yourself and don’t have receipts for labor (obviously), hire a certified RV appraiser. They will value the finished product comparable to a factory RV (e.g., a Revel or Storyteller).
- Switch Policy Types: If your carrier won’t offer Agreed Value on a DIY build, cancel them. Move to Roamly or a specialist broker.
FAQ
Does Agreed Value go down over time?
No. It stays at the number you set until you change it. However, the insurance company might ask to “re-value” the vehicle every 3-5 years to adjust for market changes.
Can I include my labor in the value?
Most insurers will not pay for your DIY labor hours. They pay for the van + materials. An appraisal is the only way to capture the “sweat equity” value.
What happens if I upgrade the van later?
You must call and increase the Agreed Value. If you add a $4,000 lift kit and don’t tell them, you won’t get paid for the lift kit.