I’ve said it a thousand times: Stated Value is a lie.
If you have a modified Jeep, a tuner car, or a hot rod, and you are with Geico, Progressive, or Allstate on a standard policy, you are playing Russian Roulette with your finances. You need an “Agreed Value” policy.
Key Takeaways
- Stated vs. Agreed: “Stated Value” (Standard) = “We pay up to this amount, or the market value, whichever is less.” “Agreed Value” (Specialty) = “We pay this amount. Period.”
- Modification Tolerance: Specialty carriers expect mods. Standard carriers tolerate them (barely) and look for reasons to deny.
- Claims Expertise: A specialty adjuster knows what a “Billet Crank” is. A standard adjuster thinks it’s a typo.
- Premium Savings: Surprisingly, specialty insurance is often cheaper because they know enthusiasts take care of their cars.
The “Why” (The Trap): The “Whichever is Less” Clause
Standard Policy: “In the event of theft or total loss, we will pay the lesser of the Stated Amount or the Actual Cash Value.”
You state the value is $50k.
The market (ACV) says it’s $20k.
They pay $20k.
You paid premiums on $50k for nothing.
[IMAGE: Side-by-side policy text comparison highlighting the “Lesser of” clause]
The Investigation: The Big Three Comparison
1. Hagerty / Grundy / Heacock (The Specialists)
- Valuation: Agreed Value (Guaranteed).
- Mods: Encouraged.
- Usage: Flexible/Hobby.
- Verdict: The only safe harbor.
2. State Farm / Allstate (The Giants)
- Valuation: ACV (or misleading Stated Value).
- Mods: Suspicious.
- Verdict: Okay for your daily driver, bad for your toy.
3. National General / Assurant (The Niche)
- Valuation: Often Agreed Value for RVs/Modifieds.
- Verdict: Good middle ground for daily-driven modified cars.
Comparison Table
| Feature | Standard Auto | Specialty (Agreed Value) |
| Payout Guarantee | None (Market Fluctuation) | 100% Guaranteed |
| Depreciation | Applied to Parts | None |
| Salvage Rights | Bid for it | Automatic Buyback Option |
| Premium | Higher (High Risk pool) | Lower (Enthusiast pool) |
Step-by-Step Action Plan
- Switch BEFORE the Crash: You cannot change policy types after the accident.
- Get an Appraisal: If you don’t know what it’s worth, pay $300 for a USPAP appraisal.
- Read the Usage Rules: Specialty policies have mileage/usage limits. Ensure you fit the profile (have a daily driver).
- Send the Build List: Send the insurer your list of mods so they are “Scheduled.”
FAQ Section
Can I get Agreed Value on my daily driver?
It is very rare. Most Agreed Value policies require you to have another “daily” car. (Leland West sometimes offers commuter options).
Does Agreed Value account for inflation?
Some policies (Grundy) have “Inflation Guard” that bumps the value 4% a year. Otherwise, you must update it manually.
What if I sell the car?
Coverage ends. The new owner must get their own policy.