What it does
Standard auto physical damage is rated using the vehicle's original cost new and age. CA 99 28 Stated Amount Insurance instead uses an amount stated in the policy for scheduled autos. The endorsement's loss payment wording governs how the stated amount interacts with actual cash value and repair cost, so explain it to the insured before binding. The current edition is 11 20.
Who needs it
Owners of specialty bodies, custom equipment trucks, buses converted for special uses, antique or classic vehicles used in business, and vehicles whose original cost new is unknown.
Key points
- Stated amount is not the same as agreed value. In the Massachusetts residual market, agreed value is a separate endorsement (MM 99 66) that bars any deduction below the agreed value.
- Review stated amounts at each renewal; depreciation reduces actual cash value even when the stated amount stays the same.
Quoting notes
Get invoices or appraisals supporting each stated amount and review the amounts at each renewal.
