Stated Value

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.