If you only get one thing right on a supercar policy, make it this. The choice between agreed value and market value is the single biggest factor in what you actually receive if the car is written off — and on an appreciating, optioned exotic, the gap between the two can run into six figures.
It is also where the fine print bites. Two policies can both say "agreed value" and pay very differently, because of a few words most owners never read.
The two ways a total loss gets paid
When a car is written off, the insurer settles on one of two valuation, based upon the policy you bought:
- Agreed Value — you and the insurer agree a fixed sum when the policy starts (and at each renewal). If the car is a total loss, that is the figure on the table, full stop.
- Market Value — the insurer pays what they assess the car was worth at the moment of the loss, based on comparable sales and condition. It is their assessment, and it is open to dispute.
For an ordinary car that depreciates predictably, market value is often fine. For a supercar, it frequently is not.
Why market value fails on Supercars
High-end and limited-production cars don’t behave like mass-market vehicles. Several things push market-value settlements below what the car is genuinely worth to you:
- Appreciation — desirable models can be worth more than you paid, but a market-value policy has no obligation to track that upside.
- Options — spec such as paint, carbon, interior, performance or aero packs or limited run invite-only models
- Hard comparables — unique vehicles with few recent local sales. A market-value assessment would lean on limited data unlikely to payout the value you want.
- Currency and supply — import and replacement costs move, and a delayed assessment may not reflect today’s reality.
The wording that trips owners up
Here is the part enthusiasts warn each other about. Not every "agreed value" policy pays the agreed value. The wording varies between insurers, and the difference is real:
| Policy wording | What it can mean at claim time |
|---|---|
| "We pay the agreed value" | You receive the figure on your certificate of insurance for a total loss. |
| "We pay up to the agreed value" | The insurer may pay the lesser of the agreed value or their assessed market value — so a falling market can still leave you short. |
Neither is automatically "wrong" — but they are not the same product, and the premium difference rarely reflects how different the outcomes can be. Always confirm, in writing, which basis applies before you buy.
How an agreed value is set — and kept honest
A good agreed value reflects the car as it actually is: the model, the options, the condition, the modifications, and the current market. Set it too low to save a few dollars of premium and you are underinsuring yourself; let it go stale and it can drift away from reality in either direction.
- Document the spec and any modifications, with values, when you set the figure.
- Review the agreed value at every renewal — markets and mod lists both move.
- If the model is appreciating, make sure the figure is allowed to keep up.
- Keep evidence (build sheet, invoices, photos) so the value is easy to defend.
This is exactly the kind of detail a specialist will push on — getting the highest defensible agreed value is one of the most valuable things a concierge does for an owner.
Want this handled properly?
Tell us about your car and we’ll put our underwriter panel to work — agreed value, the right cover, one concierge from quote to claim.
Frequently asked questions
For most high-value, optioned or appreciating cars, yes. Agreed value fixes the total-loss payout up front instead of leaving it to a disputed market valuation, which on an exotic can settle well below what the car is actually worth to you.
This guide is general information only and does not take your personal objectives, financial situation or needs into account. It is not a recommendation to buy any product. Cover, inclusions and exclusions vary between insurers and policies — always read the relevant Product Disclosure Statement (PDS) and confirm the terms that apply to your vehicle before you rely on them.