A stated amount is the value that you place on your vehicle and provide to your insurer. It’s the price you’d ask a buyer to pay if you sold your car today.
The stated amount allows you to customize your commercial auto insurance to reflect your vehicle's worth. It also takes the condition of your vehicle into account and includes special equipment or upgrades you’ve added to your business’s car or truck.
How to determine a stated amount
Dealerships, manufacturers and lending or financial institutions can also assist you in calculating your stated amount.
You’ll want to consider:
- Vehicle condition and mileage
- Special equipment you've added
- Vehicle upgrades
- Engine or major component rebuilds
This information can help you produce the most accurate stated amount for your commercial auto insurance.
Accurate stated amounts vs. actual cash value
Accurate stated amounts are important because they affect how insurance companies process and pay claims. After an accident, an insurer will look at the vehicle’s stated amount and actual cash value (ACV) and pay whichever is less.
Correctly assessing your commercial auto’s worth now can minimize coverage surprises later. An undervalued vehicle will not cover a full replacement if you experience a total loss.
There are drawbacks to overvaluing your vehicle, too. For example, if a florist states that their delivery van is worth $50,000, they will pay an insurance premium based on that amount. However, the florist would only receive the ACV of $35,000 after a total loss accident. In this case, the florist would have paid a higher premium without getting the coverage they expected.
To ensure you get the coverage you need, we recommend being as exact as possible when estimating your vehicle's stated amount. If you already own a policy but feel the value of your vehicle has changed significantly, contact us to let us know.
Contact Progressive Commercial for a quote
Contacting Progressive Commercial once you have a stated amount is the easiest way to get a quote and learn what you’ll pay. You can also protect your company by adding business insurance.