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Stated value vs replacement cost

I have a vehicle owned by Dale Earnhart. The actual amount of the vehicle is much more than the Kelley Blue Book value. My agent says I need to insure it for the state amount. What does that mean? I want to make sure my vehicle is properly insured.

Feb 16, 2019 Austintown, OH

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Ava Lynch

Insurance Analyst

Ava joined The Zebra as a writer and licensed insurance agent in 2016. She now works as a senior insurance contributor, providing insights and data a…

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  • 7+ years of Experience in the Insurance Industry

Stated value coverage is used for vehicles that are worth more than the Kelley Blue Book value. It is what your insurance companies rates the vehicle, but not necessarily what they will pay you if your vehicle was totaled. You need to be careful with this and need the coverage specifics clearly to make sure you're insuring your vehicle properly. Another option is known as Agreed Value. This is based on the proven value of your vehicle. You and your insurance company agree to this value. Some companies, such as Hagerty, specialize in these particular vehicles. Hagerty offers Agreed Value. If you'd like more information, check out our guide to classic car insurance.

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