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Compare agreed value car insurance

Get agreed value coverage to protect your valuable car

Agreed value car insurance is an option for drivers who wants protection for classic or luxury cars, but it’s not always worth it for every car. Consider getting quotes for agreed value car insurance if your ride is worth much more than the average car.

How does agreed value car insurance work?

When you take out agreed value car insurance, you and your insurer are agreeing on the value of your vehicle. The car is then insured for that amount, which is the most you can claim in the event of a total write-off. If you have standard or market value car insurance, your maximum possible payout for a write-off will be roughly the resale value of the car at the time of the accident.

Compare agreed value comprehensive car insurance policies

Name Product Gap insurance Homeowner discount Telematics Has an app? Available states
AARP Auto Insurance Program from The Hartford
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Enjoy low rates for mature drivers, plus perks like new car replacement and lifetime repair guarantees. Only for drivers over age 50.
The Zebra
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loan/lease coverage
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Discover coverage that’s broader than competitors, valuable discounts up to 30% off and perks like shrinking deductibles that reward no claims.
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Get your most compatible insurance options via a "smart matching" method aimed at finding you value.
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Affordable car insurance with highly rated customer service. Only available to military members and veterans and their family.
AZ, CO, IL, IN, MD, MO, OH, OK, TX and WI
Benefit from this online-based startup’s steep savings and convenient online quotes and claims.

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What are the features of agreed value coverage?

The most you can claim with an agreed value policy is the amount you decided on before taking out or renewing your policy. Typically, you can only adjust it at policy renewal time.

  • You don’t have to worry about depreciation with agreed value.
  • A higher agreed value will lead to higher premiums. Selecting market value or a lower agreed value can reduce your premiums.
  • Agreed value can be applied to almost any car, while market value is more suited to standard consumer models.
  • Exclusions and all the usual car insurance terms and conditions will still apply. Just because you’ve paid for a higher agreed value doesn’t necessarily mean you’ll be able to claim it.

Case study: Up in flames

John had spent nearly 15 years restoring a classic Mercedes 2026 S, which he kept parked in an exterior shed of his property. John had the car insured under agreed value coverage for $90,000. Late one evening, John awoke to see the garage up in flames from his bedroom window. By the time local firefighters had arrived, all that was left of the garage and car were mounds of ash and scrap metal.

The insurance company declared the vehicle to be a total loss. As the vehicle is outside of the two year replacement , John is paid the agreed value of $90,000.

When is an agreed value policy a good idea?

Agreed value isn’t always a common choice for car insurance. But there are some circumstances where you might benefit from this type of policy.

  • If you have a modified car. Aftermarket extras and modifications can raise the value of a vehicle well beyond its sticker price, meaning the pay out you receive in the event your car is totaled might not cover the cost to replace your car with all of it’s modifications. The easiest way to get coverage for modifications can be to calculate their value and add this into the car insurance sum insured.
  • If you have a vintage or antique car. The market value calculation of antique cars will typically be way too low. With agreed value, you can find a level of coverage that acknowledges their rarity and additional value.
  • If you have a luxury or high-powered car. High-end, high-powered and luxury cars can typically benefit from agreed value coverage. These are not typical vehicles, and depreciation won’t usually apply at normal rates.
  • If you have a financed car. If you still owe money on your car loan, agreed value means you can insure the outstanding loan as well as the actual vehicle. This can be an attractive option should a serious accident occur, as you won’t end up owing more than you get paid by a claim if your car is totaled.
  • If you have an imported car. A rare automobile will not necessarily have a defined retail value. In this case, agreed value would be your best bet.

Agreed value insurance pros and cons

Compare the pros and cons to decide if agreed value or market value is right for you.


  • Claim the full, agreed-upon value of your car in the event of an accident.
  • Get coverage for almost any vehicle, including rare, modified or valuable cars.
  • The insured value of the car is fixed and will not change unduly.
  • Choose a lower agreed value to save money on premiums though the amount you’re covered for will be reduced.


  • Agreed value car insurance is usually the more expensive option.
  • You may end up overinsured and pay for more coverage than you need or underinsured and without adequate protection.
  • Agreed value is not always available. It may only be an option with comprehensive coverage, and some insurers don’t offer it at all.
  • Sub-limits restrict the amount you can claim for certain items in the policy. For example, your policy might specify a maximum of $500 for broken glass claims and $1,000 total for all modifications.
  • If your car changes in value, you’ll need to check your coverage at renewal time.

    How much does agreed value car insurance cost?

    When purchasing agreed value car insurance, strike a balance between how much it would cost to replace your car and how much you want to pay in premiums each month. The higher the agreed value, the higher your premiums.

    Premiums vary and are typically based on several factors, such as:

    • The car’s year, make and model. Cars that are more common, popular and cheaper to repair are generally cheaper to insure.
    • Your location. Riskier areas will cause higher premiums. Similarly, parking your car on the street instead of in a garage can also raise the risk levels, and therefore your premiums.
    • Security measures. Car alarms, garage alarms and other security systems can reduce the cost of insurance.
    • Age. Older drivers over the age of 60 and younger drivers under 25 can expect to pay more for insurance.
    • Modifications and extras. Standard market value policies can include some approved manufacturer and aftermarket extras, like added safety features, to factor into the value of the car. With agreed value car insurance, you can get covered for any mod, like a custom paint job or performance-affecting modifications.

    Bottom line

    If your car’s worth more than market value, you may want to consider agreed value insurance. Compare your car insurance options to see if it makes the most sense for your situation.

    Frequently asked questions

    How does agreed value depreciate?

    The agreed value is fixed until your policy renews. At that time, you’ll have to agree to a new value with your insurance provider or switch to a traditional insurance policy.

    What type of car owner is likely to have an agreed value policy?

    Car collectors and classic car owners often opt for an agreed value insurance policy. This is because, unlike most vehicles, many classic and collectible cars increase in value instead of depreciate.

    Which is better, agreed value or market value?

    It depends on your situation. Market value insures your car for what it’s worth at the time of the accident. The market value of your car depreciates over time.

    Agreed value does not depreciate during the term of your policy. If you’re concerned about being able to replace your car without factoring in depreciation, agreed value might be the way to go. Keep in mind the various costs associated with market value vs. agreed value.

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    2 Responses

    1. Default Gravatar
      VeroJanuary 31, 2019

      What if I have an agreed value policy on my motor insurance and the car suffered a loss (not big but some) can the insurer cancel the policy or charge a new premium?

      • Avatarfinder Customer Care
        JhezFebruary 1, 2019Staff

        Hello Vero,

        Thank you for your comment.

        According to car insurers, an agreed value car insurance involves you, the car owner, and the insurer agreeing on a specific value for the insured vehicle when the policy is taken out.

        In the event of a claim being made as a result of the car being declared a total loss, your insurance company will reimburse you the agreed amount. Hence, your insurer will pay you and you may renew your coverage. I suggest that you check this with your insurer.

        It’s important that you read the eligibility criteria, features and details of the policy, as well as the relevant Product Disclosure Statement PDS/T&C’s of the policy before making a decision and consider whether the product is right for you.


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