Agreed Value vs. Actual Cash Value for Lifted Trucks

Most auto insurance policies pay Actual Cash Value (ACV) when your vehicle is totaled — and for a lifted truck with significant modifications, that's almost always the wrong answer.

What Is Actual Cash Value?

ACV is the current market value of your vehicle at the time of loss. The insurer sends an adjuster, who looks up comparable vehicles in the used truck market, accounts for mileage and condition, and arrives at a number.

The problem for lifted truck owners: comparable vehicles in the used market are usually stock trucks. If your truck has $20,000 in modifications, an ACV adjuster is comparing it to a stock F-250 with similar year and mileage — and that's what they'll pay.

What Is Agreed Value?

Agreed value is a commitment made at policy inception: you and your insurer agree on the total insured value of your truck. If the truck is totaled, you receive that agreed amount — period. No depreciation, no comparison to stock trucks, no arguments.

For lifted trucks, agreed value works like this:

Step 1: Establish stock value. What would a stock version of your truck sell for?

Step 2: Add modification value. What did you spend on the lift, wheels, tires, bumpers, and other modifications? What are they currently worth?

Step 3: Total the two numbers. That's your agreed value.

Step 4: Lock it into the policy. At claim time, that amount is what you receive.

A Simple Example

Your truck:

• 2022 Ford F-250 — stock value: $52,000
• Lift kit and related components: $7,500
• Aftermarket wheels and tires (37s): $5,200
• Custom bumpers: $2,800
• Electronics and accessories: $1,500

Total agreed value: ~$69,000

Under ACV, the adjuster might value your truck at $51,000 based on comparable stock 2022 F-250s — even if your modifications are in perfect condition and documented. You'd lose $18,000 on paper.

Under agreed value, you receive $69,000 (minus your deductible). Rebuild your truck or take the cash — your choice.

Updating Agreed Value After New Modifications

Agreed value is fixed at policy inception. If you add significant mods after binding — a new bumper package, upgraded wheels, an exhaust system — your agreed value doesn't automatically update.

You need to call and update your modification schedule when you make meaningful additions. Most policies allow mid-term updates; your premium adjusts slightly and your new mods are covered at their documented value.

Does ACV Ever Make Sense for a Lifted Truck?

For a lightly modified truck where the modification value is under $2,000–$3,000 and you're comfortable with stock book value coverage, ACV policies are cheaper and the gap between ACV and agreed value is small.

For any truck with significant build investment — $5,000+ in modifications — agreed value is almost always worth the additional premium. The math is simple: the premium difference is far smaller than the coverage gap.

How to Get Agreed Value Coverage

Not all carriers offer agreed value for personal vehicles. We specialize in placing agreed value programs for modified trucks. The process takes about 30 minutes to document your build properly.

Call us at 844-967-5247 or request a quote online.