Insurance value doesnt reflect genuine buy it prices. Its more along the lines of a replace it price from a seller not overly interested in selling.
Most people aren’t overly interested in selling at the moment hence the sky high used car prices. Pre covid your agreed value was normally at the upper end of market prices, now I think it’s barely keeping up.
I just changed insurer recently to Shannons after having a look at Carsales and working out I would need to spend at least $25k to replace my SSV with a similar mileage example. My previous insurer was only covering it for $15k which is what it was worth pre covid.
Shannons offered $25k agreed value upfront sight unseen (I didn’t tell them the value I had already determined myself from looking at Carsales) which is at the lower end of replacement prices.
Realistically in days of yore they would probably be offering $30-35k on an agreed value policy as that’s the upper end of the market for manual SSV prices but the insurance companies are having a hard time with used car values increasing, which they historically never do.