Agreed value car insurance vs market value car insurance
Market value car insurance
This is a term used to describe the price that your car, in its existing state, would command in an open market. This is unlikely to be the same as its trade-in value, or the price that a private buyer or collector would pay for your car.
- Market value is determined by the insurer using industry guidelines.
- Market valuation is used to determine the premium on your car insurance policy.
- Generally, market value car insurance is cheaper than agreed value car insurance.
- It is a good option if your car is older, in average condition, or simply a standard car with minimal modifications.
Agreed value car insurance
As the name suggests, agreed value car insurance is a value decided upon in agreement between the insurer and the car’s owner.
- Agreed value car insurance is decided when the policy is first taken out.
- If the car is secondhand, the insurer and owner will negotiate the agreed value dependent on industry guidelines.
- Generally, if you have a new car with lots of modifications, agreed value car insurance will allow you to include these in the overall value. This is handy in the event that the vehicle needs to be replaced..
Choosing the best option for you
You’ll need to consider your personal circumstances and the type of vehicle that you’re insuring. Ask yourself some of the following questions to help make your decision:
- How much do I want to spend on my car insurance?
- How old is my car?
- What condition is my car in?
- Have I spent a lot on getting added extras and modifications to my vehicle?
It’s not easy to weigh up agreed value insurance versus market value insurance. Asking for expert advice from Positive Lending Solutions can save you time and money, and give you the confidence that you've made the right decision.
Finding the best policy
Once you’ve decided whether you want to go for agreed or market value car insurance, you’ll want to set about finding the best car insurance policy for you.
There are all sorts of things to consider when finding the best car insurance policy for you and if you’re feeling overwhelmed remember that Positive Lending Solutions can always talk you through the different options.
Consider the following as basic points to get the right car insurance:
- What is the no claims bonus on my policy?
- Is there an after accident care included?
- Does the insurer have good customer satisfaction?
- What are your excess options?
- Is car hire available after theft or an accident?
If you’re in an accident, who will repair your car? Insurers generally give you the option of either:
- Giving you a choice of repairer
- Requesting a preferred repairer that has partnered with the insurer
If you are choosing a car insurance policy with a preferred repairer, ensure that the preferred repairer has good reviews and that you would be happy to use them in the event of an accident.
Contact Positive Lending Solutions
Choosing car insurance is a daunting but necessary step in protecting yourself and one of your most valuable assets. If you are unsure about deciding between agreed value and market value car insurance, Positive Lending Solutions can offer balanced and trustworthy advice. Get in touch today.