Agreed vs market value

Depending on the car insurance policy you’re looking at, you may have the option of choosing between agreed value or market value. This value refers to the amount your car will be covered for, and how much reimbursement you would receive, in the event your car is written off or stolen and unable to be found (total loss).

With this option, you’re able to choose the amount your car is covered for within a specified range. This amount should reflect the amount of money you believe your car is worth. If the amount is agreed to by your insurer, that’s the amount you’d be paid out in the event of a total loss claim.

• Choice: you get to nominate the amount your car is insured for.
• Stability: the amount your car is insured for is locked in for the policy period.
• Clarity: you have increased certainty around the compensation you’d be entitled to if your car is written off or stolen.

Tip: Our Comprehensive and Comprehensive Plus policies give you the option to choose between agreed or market value.

The market value also dictates the maximum amount you’d be entitled to in the event of a total loss payout; however, it’s based on what your car is worth on the open market at the time of your claim, rather than a figure you choose. The market value is determined by your insurer, and can be based on:

• local market prices
• your car’s age and condition
• kilometres travelled
• any modifications, accessories and extras.

It’s important to note that market value is not the same as trade-in value or what it would cost to replace your existing car with a new one.

• Choice: the amount your car is insured for will be dictated by the market.
• Stability: the amount your car is worth may fluctuate over the policy period.
• Clarity: you will only know the payout amount once you make a claim.