Hey folks, Jeremy here from Ochsner Insurance. Hope you’re having a fantastic day! Let’s jump right into it—if your classic or high-end car got totaled today, are you confident your insurance would actually pay you what it’s worth?
That’s the million-dollar question, especially for those of you with collector cars, custom builds, or luxury vehicles that mean more than just transportation.
Let’s Talk Actual Cash Value (ACV)
Most standard auto policies use what’s called Actual Cash Value or ACV. That’s insurance-speak for “we’ll pay you what your car’s worth today, minus depreciation.” So even if you spent $150,000 on a Porsche or have a fully loaded Super Duty, if it gets totaled, you might only see half of that back—or less. Yikes.
The Misunderstood “Stated Value”
Now let’s clear up some confusion. Stated Value sounds better than ACV, but it’s often misunderstood. With Stated Value, you basically tell the insurance company what your vehicle’s worth—and they say, “Okay, we’ll use that as a max.” Key word: max.
That doesn’t mean that’s what you’ll get paid.
If the vehicle depreciated and the ACV is lower than what you “stated,” they can (and often will) pay you the lower amount. So it’s not guaranteed. It’s just the ceiling, not the floor. And in many cases, that can leave you short on cash for your car!
Why Agreed Value Is the Better Option
Now here’s the winner: Agreed Value.
This is where you and the insurance company both agree—up front—on what your vehicle is worth. It’s in writing. So if there’s a total loss, there’s no arguing or surprises. You get paid the agreed amount. It’s that simple.
It’s the best fit for:
- Classic cars
- Collector cars
- Custom builds
- Supercars and high-end models
- Vehicles with appreciating value
And if your collector car goes up in value each year (which a lot of them do), make sure you’re reviewing that policy regularly. What was once insured for $105,000 could be worth $155,000 now—and you don’t want to be underinsured.
Think About It Like Personal Property
You wouldn’t just lump your baseball card collection or rare bourbon stash onto your homeowner’s policy and call it good, right? You’d schedule it. You’d protect it properly. Same goes for your car. When your ride is one-of-a-kind, it deserves coverage that treats it that way.
Our Role: Present Options, You Choose
At Ochsner Insurance, our job as independent insurance brokers is simple—we give you the best options, break them down in plain English, and help you make an informed decision. That’s it. You’re in control of protecting what matters most to your family.
If anything here resonated or you’ve got questions about how your ride is currently insured, give us a call. We’re here to help.
✅ Like and share this blog if it helped.
⭐ Drop us a five-star review if we’ve earned it.
📬 Got questions or suggestions? Send us a message anytime.
Here’s to protecting your passion—and your peace of mind.
– Jeremy Ochsner