Agreed Value

Feedback

Feedback
This is an automobile insurance term. When you buy insurance for a car, you usually insure it for actual cash value, or market value. But if you have a particularly special car, like a very old or rare or expensive car, some insurance companies will insure the car for a preagreed amount that they will pay you if you have a total loss. This is known as agreed value insurance. Sometimes insurance companies will provide agreed value on "regular" cars as well, but they will probably charge a slightly higher premium for giving it. Note that you will only get enough money to buy a new car if the agreed value is high enough.