Originally Posted by BlockO
Good point! a lot of companies do that. I think they call it "stated value" coverage. but when you read the contract, the only thing really stated is actual cash value.... smoke and mirrors.
Agreed value and stated value are different coverage. With agreed value, the carrier will pay the full insured amount in a total loss. Companies like Hagerty changed agreed value to guaranteed value so people don't get confused. Stated value is the worst - the company pays ACV up to the stated value. In other words, the insured could get less than ACV. It's used to either by carrier to limit their exposure. Insured may also use a lower stated amount to save premium.