What is the difference between agreed value and market value car insurance?
If your car is written off or stolen, the difference between agreed value and market value car insurance becomes apparent. For example, let’s say you bought a new car for $30,000 and insured it for the agreed value of what you paid for it. If your car was written off soon after, your insurer would pay you the agreed amount of $30,000.
How is the value of my car insured?
Your car is insured for its current market value at any given time, including depreciation. Agreed value: You and the insurer agree on a specific value ahead of time. Your car is considered to be worth this much for the purposes of the insurance policy. The value you decide upon is the sum insured, which is the total amount of cover you have.
What is the market value of a car?
Market value is the standard option whereby the value of the car is based on what you can expect to get for it on the open market, taking into account its condition and depreciation. The condition comprises mileage, service history, and accident reports. Why market value?