With car insurance, what is the difference between market value and agreed value?
Last Updated: 03 Feb 2023
| Your policy schedule shows the sum insured amount you have chosen, and whether you have an Agreed value or Market value policy. Agreed value The agreed value is the fixed amount we agree to insure your car for in your current insurance period. When you make a claim, if we decide your car is a total loss, we pay you the car's sum insured. We deduct the applicable excesses and any premium you owe us up to the end of the period of insurance before we settle a total loss claim. The sum insured is the amount you choose to insure your car for, including the value of any modifications or accessories. Market value When you make a claim, we'll work out the market value, based on the estimated reasonable cost of replacing your car with one of the same make, model, year, specification and condition just before the loss or damage. If we decide your car is a total loss, we pay you your car's market value just before the loss or damage happened, or your sum insured if that is less. We deduct the applicable excesses and any premium you owe us up to the end of the period of insurance before we settle a total loss claim. |
Did this answer your question?
Related Answers
-
It depends on the type of modification your car has and whether you’ve told us about it. If you have ...
-
When something happens and you need to make a claim, get in touch with the relevant claims advisory team immediately. ...
-
Yes. As part of your insurance contract you need to make sure the details on your policy are correct. To ...
-
Yes. Check your policy schedule to see all the things that make up your insurance. It's your responsibility to let ...
-
It’s very important that you answer all the declaration questions honestly and as completely as possible. Remember, insurance is a ...
-
Yes. You can choose to exclude drivers under 25 years old and you'll get a premium reduction. You can't do ...
-
There is a Package Discount if you have two or more home, contents or car insurance policies through ASB. If ...
-
Yes, ASB Roadside Rescue can be added to Commercial vehicle insurance for an extra cost. Give us a call on ...
-
Your Car Insurance policy can cover some business activities, but does not cover the car being used in any of ...
-
Give us a call on 0800 200 252.
