Agreed value describes a value accepted in the insurance contract for a specified asset or benefit. For a vehicle, it should be read from the current schedule, not inferred from the purchase price or last year’s renewal.
The distinction that matters
The agreed amount is not a promise that every claim pays that amount. Excesses, exclusions, settlement provisions and the nature of the loss still matter.
What to check
- The current scheduled agreed value.
- Treatment of modifications and accessories.
- Total-loss versus repair settlement terms.
- Excesses and any deductions in the wording.
Example to discuss
Compare two vehicle quotes using the same agreed amount and excess; a lower premium may reflect a lower insured value rather than a better offer.
This is a hypothetical comparison, not a customer claim or a determination of cover.
Sources and further reading
General information only. The policy, schedule and applicable rules determine the actual position. For a personal decision, use an appropriately qualified adviser or the relevant provider.