After the discussion of stated value insurance, I did some
investigation.  I found:

1.  Stated value insurance seems not to differ from the insurance that
we all carry on late model cars, except there is a maximum value stated
in the policy.  The policy with the stated value typically has a
provision that in case of theft or total loss, the insurance company
will pay the lesser of (1) the stated value, (2) actual cost to repair,
or (3) actual cash value at the time of the loss.

So, stated value insurance seems to offer no advantage to the consumer
(owner of a vanagon, for example).

2.  Agreed value insurance is offered for collectible, classic, or
antique cars.  This is similar to stated value insurance, in that there
is a particular valuation placed on the vehicle at the time the
insurance policy is issued.  The policy will then pay, in the event of
loss, the lesser of (1) the agreed value, or (2) actual cost of repair.

Agreed value policies typically have significant restrictions on use,
including a miles driven per year restriction, storage restriction
(locked storage facility, indoor storage are usual requirements), driven
only to show events and so on.

3.  Insurance agents often misunderstand or misrepresent the
limitations, benefits, and advantages of the two kinds of policies.  In
particular, they often misconstrue, and communicate incorrectly to
buyers, that stated value insurance will pay the amount stated in the
policy.  This appears not to be true.

For most of us, it would seem that stated value insurance offers no
valuation advantage, and agreed value insurance has serious limitations
for those who use their vehicles outside the severe limitations allowed
(though if the vehicle is used within the restrictions, then one should
expect to receive the agreed value in the event of loss).

Bottom line:  Be very careful in buying insurance to be sure you are
getting what you need and expect.

I undertook this investigation because I had been told by my insurance
agent (AAA), that I could not get a policy that would pay more than the
underwriter's valuation for my camper, even with appraisals.  It seems
that I can, but with restrictions on use.  I will be looking now for an
agreed value policy, but with restrictions I can live with (for example,
I could live with 12 or 15k miles maximum driving per year, and I could
store my camper in a locked facility, but I could not live with 5K, and
I could not live with driving it only to events.  Hell, I haven't been
(and don't expect to ever go) to an event yet).

David McNeely

David McNeely