People often call Real Insurance to ask questions about their car insurance. And we love to help in any way we can. One of the most common questions we get is about the difference between market value and agreed value when taking out car insurance.
Market value is the value of the car on the general market just before an incident. When market value is used in regards to car insurance, the market value of a car depends on factors like the make, age and condition of the car. One of the disadvantages of taking out car insurance with a market value on your car, is that you cannot know the precise amount that you would be reimbursed at claims time until the time of the claim settlement. This is because the market value of any car is always changing, depending on the conditions of the market.
Real Insurance use ‘Redbook’ to determine market value for our car insurance customers. Redbook is a standard car pricing guide in the Australian car industry. You can find out the current market value of your car by going to www.redbook.com.au. The values displayed on Redbook are updated monthly.
When you take out a comprehensive with Real Insurance, you can nominate an agreed value for your car. We can then insure your car for this agreed value for the term of the policy. For the purposes of comprehensive car insurance, there are usually some limits on the value we can agree upon. We can discuss these limits with you over the phone on 13 19 48.
Your agreed value is then one factor used to determine the premium on your policy, along with other pricing factors, such as your postcode, where you keep your car, security features on your car, and your driving experience. If you choose a higher agreed value for your car, chances are, your premium will also be higher.
Agreed value is particularly relevant for car owners who may have a high value of accessories and modifications that would not be reflected in the standard market value of the car. Agreed value is also favoured by owners of new cars, who are able to be reimbursed for the full value of their new car, rather than be affected by the depreciation that usually occurs when brand new cars leave the show room.
By offering you an agreed value on your comprehensive car insurance policy from Real Insurance, you have peace of mind about your cover in the unfortunate event of an accident. So if your car is declared a total loss after an accident, or it is stolen and written off, you will know exactly how much you are due to be reimbursed.
You can get a quick car insurance quote online right now, and nominate your own agreed value for your car.