Auto Insurance
Agreed Value Coverage
A policy where insurer and owner agree on the vehicle's value upfront — full amount paid at total loss, no depreciation.
Last reviewed: May 2026 · Editorial methodology
Definition
Agreed value coverage (also called guaranteed value) is a policy structure in which the insurer and the vehicle owner agree on the car's value at policy inception. In the event of a total loss, the insurer pays exactly that agreed amount with no depreciation deducted. This contrasts sharply with standard ACV policies that can reduce payouts significantly. Agreed value policies are common for classic cars, collectibles, and high-value vehicles where standard depreciation calculations are inappropriate. Premiums are typically higher than standard policies and require an appraisal or detailed documentation to establish the agreed value.
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Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
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