Stated Value
Also known as: Stated amount, Stated amount coverage
Stated value is a figure you declare — and the insurer accepts on the declarations page — as the value of a covered vehicle, trailer, or piece of equipment for physical-damage purposes. It is most common on commercial auto and inland marine policies for older trucks, specialty rigs, or used equipment where the insurer does not want to insure a market value it cannot verify. Critically, listing a stated value does not mean the insurer will simply write you a check for that number at a total loss. Most stated-value forms pay the lesser of the stated amount, the cost to repair or replace, or the property's actual cash value at the time of loss. In practice the stated value functions as a ceiling on the claim and, because premium is charged on it, you should not inflate it — you would pay for coverage you can never collect.
This matters to a small-business buyer because stated value is frequently confused with agreed value, and the difference decides how much you actually receive after a fire, rollover, or theft. Under a true agreed-value settlement the "lesser of" language is removed by endorsement, so the insurer pays the full agreed figure with no depreciation argument at claim time — you know your recovery before the loss ever happens. Under stated value, the adjuster can still argue the truck's market value fell below the number on your policy and pay that lower ACV instead. Owner-operators and fleets insuring aging tractors often carry stated value thinking it locks in a payout, then discover at a total loss that depreciation cut the check well below expectations.
A practical nuance: stated value governs the physical-damage side of the policy (collision and comprehensive), not your liability limits, and it interacts with your collision coverage deductible the same way any physical-damage limit does. If you own a distinctive, restored, or hard-to-replace unit and want certainty, ask your broker whether a true agreed-value or replacement-cost endorsement is available and priced reasonably; if the vehicle is a routine depreciating work truck, stated value at a realistic number is usually the sensible, lower-premium choice. Always review the exact policy wording, because "stated amount" and "agreed value" are used loosely in the market and only the form language — not the salesperson — determines what you collect.
Real-world scenario
Ironline Hauling LLC, a two-truck hotshot operation out of Lubbock, Texas, bought a used 2019 Ram 5500 flatbed for $92,000. Because it was no longer new, the owner didn't want to pay for full replacement cost, so the underwriter wrote physical damage on a stated value basis: the owner declared the truck worth $85,000 and a second, smaller 2016 Ram 3500 at $45,000. The annual commercial auto physical-damage premium came to $3,150 (about $262.50 per month), with a collision deductible of $2,500 and a comprehensive deductible of $1,000.
Eighteen months later the 5500 rolled on an icy on-ramp. The body shop's repair estimate hit $96,000, well past the truck's value, so the adjuster declared a total loss. Here is the trap owners miss: stated value is not a promise to pay $85,000. The policy pays the lesser of the stated value or the truck's actual cash value at the time of loss. The adjuster valued the depreciated truck at $71,000 ACV.
So Ironline received the ACV of $71,000, minus the $2,500 collision deductible, for a net check of $68,500 — not the $85,000 stated figure the owner assumed. The insurer then sold the wrecked unit for $9,000 in salvage. Ironline still owed $14,200 on the truck loan, so the $68,500 payout cleared the note and left roughly $54,300 toward a replacement — a $14,000 shortfall versus the depreciation-free $82,500 net the owner had expected from the $85,000 stated amount.
How it affects your premium
Stated value premiums track the value you declare and the loss exposure of each unit. The main cost drivers are:
- Declared stated amount: Physical-damage rates are applied per $100 of stated value, so declaring $85,000 costs more than declaring $60,000 — but under-stating can leave you short at claim time.
- Vehicle type and GVWR: Heavier trucks and specialty bodies (flatbeds, reefers, tow rigs) carry higher rates than a light pickup at the same stated value.
- Deductible selection: A higher deductible — say $5,000 instead of $1,000 — lowers premium but increases your out-of-pocket on every physical-damage claim.
- Radius and use: Long-haul or interstate operation raises loss frequency and severity versus local delivery, pushing rates up.
- Driver and loss history: Prior collision and comprehensive claims, plus driver MVRs, directly load the physical-damage rate.
- Coverage form (stated vs. agreed): True agreed value and full ACV forms price differently than a stated-value "lesser of" form.
- Vehicle age and depreciation curve: Older units depreciate faster, widening the gap between stated value and ACV and affecting how underwriters rate the unit.
Common misconceptions
Myth: Stated value means the insurer will pay me exactly the amount I stated if the vehicle is totaled.
Reality: Most stated-value forms pay the lesser of the stated amount or the vehicle's actual cash value at the time of loss, minus your deductible. If the depreciated ACV is below your stated figure, you receive the lower number.
Myth: Stated value and agreed value are just two names for the same coverage.
Reality: They are different. Agreed value locks in a fixed payout with no depreciation argument at claim time, while stated value is typically a 'lesser of stated amount or ACV' basis that can pay less than you declared.
Myth: If I state a high value, I'm guaranteed a bigger check, so I should inflate it.
Reality: Over-stating raises your premium without raising your payout, because the insurer still caps recovery at the actual cash value. You pay more for coverage you can never collect.
Frequently asked questions
Is stated value the same as actual cash value?
When would I choose stated value over agreed value?
Does stated value apply to both collision and comprehensive claims?
Will I still owe money on my truck loan if the stated value payout is low?
Does a higher stated value increase my premium?
Sources cited
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