Agreed Value vs Actual Cash Value Boat Insurance

When you’re comparing agreed value vs actual cash value boat insurance, it’s important to understand how differently these two valuation methods work during a claim. The choice you make now can have a major impact on what you’re paid after a loss, and it’s one of the most common areas boaters ask me about when reviewing coverage options.

This is something I walk every client through, because I want boaters to understand exactly how their policy will respond. Here is the breakdown in straightforward, boater-friendly language.

What Is Agreed Value?

Agreed Value means you and the insurance company decide upfront what your boat is worth.
If the boat is a total loss, that is the amount they pay. No depreciation. No debate about market value.

Simple example

If your boat is insured for $150,000 Agreed Value, and it becomes a total loss, the payout is $150,000.

Why boaters prefer it

• No depreciation

• Predictable payout

• Easier for financing

• Best for newer or upgraded boats

If you want your claim handled with fewer surprises, Agreed Value is the safer option.

When Agreed Value makes sense

• Boats under 10 to 15 years old

• Yachts or high-value boats

• Boats with new engines or major upgrades

• Anyone who wants stable, predictable protection

If you are unsure what your boat should be insured for, I can help evaluate it and make sure the number is accurate.

What Is Actual Cash Value (ACV)?

Actual Cash Value means the insurer determines what your boat is worth at the time of the loss.
Depreciation is factored into the payout.

Simple example

You paid $150,000 for the boat.
Today it is worth $110,000.
If it’s totaled, the payout is $110,000.

Why boaters choose ACV

• Lower premiums

• Practical for older boats

• Often chosen when a boat depreciates quickly

When ACV makes sense

• Older boats (15 to 20+ years)

• Boats with cosmetic wear

• When cost savings matter more than total-loss payout

If you think ACV might be right for your boat, I can compare both options and show you the difference in cost and claim outcome.

The Most Important Difference

This is the part every boater should understand clearly.

Agreed Value pays the full insured amount.

ACV pays a depreciated amount.

This matters most in total losses, fires, theft, and major storm damage.

Real-world example

Boat: 2018 center console
Insured for: $180,000

Agreed Value payout: $180,000
ACV payout after depreciation: $135,000

That is a $45,000 difference. I see this scenario happen in real claims, which is why choosing the right valuation method is important.

If you want me to check what your boat would be worth under both methods, I can run the numbers for you.

Partial Losses Work Differently Too

Many boaters only think about total losses, but partial losses are where frustration really happens.

With Agreed Value

• New parts are typically used

• Depreciation is usually not applied

• Repairs are more consistent across carriers

With ACV

Depreciation may apply to:

• Canvas

• Upholstery

• Electronics

• Outboards

Not every insurance company handles this the same way, but Agreed Value generally offers stronger repair outcomes. If you want clarity on how your specific boat would be handled, I can walk you through each carrier’s approach.

Upgrades Make a Big Difference

If you’ve repowered, added electronics, or completed major work, you want to be sure that value is protected.

Example

You install new twin 300s for $52,000.
Under ACV, those engines may be treated as used immediately. Under Agreed Value, the full upgraded value is usually protected.

If you’ve upgraded your boat recently, let me know. I can review the numbers to make sure your insurance reflects the true value.

Which One Should You Choose?

Choose Agreed Value if:

✔ Your boat is newer
✔ You have upgrades
✔ You want fewer surprises during a claim
✔ You are financing your boat
✔ You want the stronger long-term protection

Choose ACV if:

✔ Your boat is older
✔ You want a lower premium
✔ You are comfortable with a reduced payout
✔ The boat is not a major financial risk

Everyone’s situation is different. Most boaters contact me when they are unsure which direction to take, and I walk them through it with real numbers. You can do the same anytime.

The Bottom Line

Agreed Value offers predictable protection and stronger payouts. ACV reduces your premium but can reduce what you receive after a loss. Both options can be good, but choosing the right one matters.

If you want help choosing between agreed value vs actual cash value boat insurance, I can walk you through the numbers and show what makes sense for your boat.

As always, remember to wear your life jackets and enjoy the water!