I stood in the rain looking at my twisted 1968 Charger, confident that my policy listing a “Stated Value” of $85,000 would cover the loss. Two weeks later, the AI adjuster sent a settlement offer of $52,000, citing a “market correction” and recent auction results for “driver-quality” examples. I realized too late that “Stated Value” is the biggest linguistic trap in the insurance industry, designed to make you feel safe while guaranteeing the insurer never pays a cent more than they have to.
Key Takeaways
- Stated Value does NOT mean Guaranteed Value: It puts a ceiling on your payout, but the insurer can still pay the lower Actual Cash Value (ACV).
- Agreed Value is the only safe option: “Agreed Value” or “Guaranteed Value” locks in the payout amount. If it says $85k, you get $85k. Period.
- Depreciation is the enemy: Stated Value policies allow carriers to depreciate your classic car just like a 2020 Honda Civic.
- Proof of Value: To get Agreed Value, you must provide photos and sometimes an appraisal upfront. If you didn’t do this, you likely have Stated Value.
The “Why” (The Trap): The “Lesser Of” Clause
The wording in a Stated Value policy is deceptive. It usually reads:
“In the event of theft or total loss, we will pay the lesser of the Stated Value or the Actual Cash Value.”
This allows the insurance company to collect premiums on $85,000 worth of coverage, but if they can find three comparable cars on eBay for $50,000, they only owe you $50,000. You are paying for coverage you can never use. It protects the insurance company from overpaying on a car, but it exposes you to market volatility and subjective adjusting.
[IMAGE: Screenshot of a policy Declarations page highlighting the “Lesser of” language in red]
The Investigation: I Called Them
I stress-tested three major classic car programs to see how they define value in 2026.
1. Hagerty
- The Term: “Guaranteed Value.”
- The Test: I asked, “If the market crashes tomorrow and my car is stolen, what do you pay?”
- The Answer: “We pay the number on the policy. Market fluctuations don’t matter.”
- My Verdict: The Gold Standard. They include “Cherished Salvage” options too, letting you keep the wreck and the check.
2. State Farm (Standard Classic / Antique)
- The Term: Often “Stated Value” or “Agreed Value” depending on the agent’s knowledge.
- The Test: I pressed a local agent on the payout clause. He admitted that for their standard “Antique” plates program, they reserve the right to review current market value at the time of loss.
- My Verdict: Risky. It depends heavily on the specific endorsement attached.
3. Grundy
- The Term: “Agreed Value.”
- The Test: Similar to Hagerty, they lock in the number.
- The Edge: They include an automatic “Inflation Guard” that increases the value by a small percentage at renewal without raising the premium significantly.
- My Verdict: Excellent for high-end collections where value creeps up annually.
Comparison Table
| Feature | Stated Value (The Trap) | Agreed Value (The Goal) | Actual Cash Value (The Default) |
| Payout Amount | Lesser of Limit or Market Value | 100% of Limit Listed | Market Value minus Depreciation |
| Depreciation | Applied | None | Heavily Applied |
| Premium Cost | Often Higher (Ironically) | Moderate | Lowest |
| Best For | No One (Avoid) | Collectors | Daily Drivers |
Step-by-Step Action Plan
- Pull Your Dec Page: Look at the “Limit of Liability” section. Does it say “Agreed Value” or “Stated Amount”?
- Call Your Agent: Ask this specific question: “If my car is stolen tomorrow, do you write a check for the limit, or do you check market value first?” If they hesitate, switch.
- Get an Appraisal: If you are switching to Agreed Value, get a digital appraisal (using services like AutoAppraise) to justify your number.
- Review Every Renewal: In 2026, values fluctuate wildy. If your agreed value is from 2023, you are underinsured. Bump it up.
FAQ Section
Why do agents sell Stated Value policies?
Many general auto agents don’t understand the difference. They select “Stated Value” thinking it helps the client, not realizing the “Lesser Of” clause exists.
Can I switch from Stated to Agreed mid-policy?
Yes. You don’t have to wait for renewal. Call today and ask to endorse the policy to Agreed Value. They may ask for photos.
Does Agreed Value cost more?
Often, it costs less because Agreed Value policies are usually “restrictive use” (no commuting), which lowers the risk profile compared to a standard Stated Value policy.