Agreed Value

You and the insurer lock in a value up front; on a total loss it pays in full, no depreciation debate. Beloved by classic-car folks.

Agreed value is a settlement method where you and the insurer lock in a set value for an item up front, and on a covered total loss it pays that amount in full — no depreciation argument at claim time.

It’s the standard for things whose worth is hard to pin down or doesn’t follow normal depreciation: classic cars, fine art, jewelry, and collectibles. Instead of fighting over “what was it really worth,” the number is settled in advance, usually backed by an appraisal.

This is a big reason collector-car and valuables policies exist separately from standard coverage — a normal auto or home policy would pay actual cash value and leave you short on a prized possession.

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This is a friendly general explanation, not legal or policy language. Exact coverage depends on your policy, carrier, and state. 🤝

Written and reviewed by the We Insure Things team — licensed independent insurance agents. Last reviewed July 23, 2026. Questions? Ask a licensed agent.