An ‘agreed value’ in a car insurance policy refers to the amount that your insurer has agreed to pay out if your vehicle is written off or stolen (and cannot be recovered). If you have an ‘agreed value policy’, your vehicle’s agreed value will be stated on your Certificate of Insurance.
It might be appropriate to choose an agreed value policy if you own a classic car – or a car that is fitted with expensive modifications.
However, agreed value policies are typically more expensive than standard car insurance policies. Therefore, you should carefully consider whether the ability to claim for your car’s original value is worth the extra cost.