Auto Insurance

Stated Value Coverage

A policy where you declare the vehicle's value — but the insurer may pay only ACV at a total loss.

Last reviewed: May 2026 · Editorial methodology

Definition

Stated value coverage allows the policyholder to declare a specific value for the vehicle, which typically sets the maximum payout amount. However, unlike agreed value, stated value policies often contain language allowing the insurer to pay the lesser of the stated value or the actual cash value at the time of loss — meaning depreciation still applies. This distinction catches many classic and collector car owners off guard. Always read the policy language carefully: a true agreed value policy is preferable for collectibles. Stated value may be appropriate for vehicles where you simply want to cap the insurer's exposure at a known figure.

Where this term matters

Auto Insurance →

Tip

Glossary definitions are educational. Always check your own policy language — insurers can define common terms differently from one another. When in doubt, request a written explanation from your agent.

Related terms

Agreed Value CoverageA policy where insurer and owner agree on the vehicle's value upfront — full amount paid at total loss, no depreciation.Classic Car InsuranceSpecialty auto insurance for collector, antique, and vintage vehicles with agreed-value coverage and mileage restrictions.Actual Cash Value (ACV)The depreciated value of property at the time of loss — what your insurer pays minus age and wear.Total LossA vehicle is declared a total loss when repair costs exceed a threshold percentage of its actual cash value.

Related guides

Source: Cover Forge USA editorial team|Last verified: May 2026|Methodology
Definitions are educational and may be simplified. Always refer to your policy contract and consult a licensed agent for terms that affect coverage decisions.
CF

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 June 2026

Get Insurance Updates

Occasional updates on insurance rules, coverage changes and new guides — and ways to save.

  • ✓State-specific insurance rule changes
  • ✓Seasonal enrollment deadline reminders
  • ✓Expert tips to lower your premiums
  • ✓New coverage options in your state

Free forever. Unsubscribe with one click. No spam, ever.

Important Disclaimer

This site provides general educational information only and is not a substitute for professional insurance advice. All rates, data, and coverage details are estimates and may not reflect your actual premiums. Insurance availability and pricing vary by state, insurer, and individual risk factors. Always consult a licensed insurance professional in your state before making coverage decisions.

← Back to Insurance Glossary (355 terms)