Agreed Value vs Market Value Car Insurance: What Suits You?
Confused about the difference between market and agreed value when it comes to car insurance? Learn about different car insurance options and see what Bingle has to offer.
Confused about the difference between market and agreed value when it comes to car insurance? Learn about different car insurance options and see what Bingle has to offer.
6th November 2020
While you may have heard of the terms 'market' and 'agreed' value, you may not fully understand the difference between them. This may only become particularly relevant to you if your car has been deemed to be a write-off, and your insurer has agreed to pay you a total loss payment.
Keep reading to find out more about market vs agreed value.
Market value means the amount that the market would pay for the car. We may use recognised industry publications to assist us in calculating the amount. Market value excludes costs of registration and compulsory third party insurance, stamp duty and transfer fees, dealer warranty costs and dealer delivery. It's important to note, it's not necessarily the exact amount that you'd like to sell it for; it may be higher or lower. The market value of your car can change over time – unlike agreed value, it's not a fixed and agreed price.
Various factors can influence the market value of a car. To give you an idea, here are some more examples of what we at Bingle use to determine market value:
No - at Bingle we don't offer agreed value. We only offer market value cover, and only for our Comprehensive Car Insurance policies. By keeping insurance simple, we're able to keep our prices affordable and still offer great value car insurance.
(Just note, market value doesn't apply for our Third Party Property Damage Insurance. This type of policy doesn't cover damage to your car. It only covers your legal liability up to $20m for damage caused to other people's vehicles and property.)
If your car is up to 3 years old you can add New for Old cover as an optional extra if you take up Comprehensive Car Insurance. With New for Old cover, if your car is a write-off, we'll replace it with a brand-new car of the same make and model, where available.
For more information on market value and New for Old cover, read the PDS
As mentioned at the start of this article, people generally start to be concerned about the value of their car if it has been 'written-off'. Your car may be deemed by us to be a write-off if it's stolen or is damaged by an insured event and can't be repaired, or the cost of repairs make it uneconomical to repair your car.
If this happens, we'd pay you a total loss payment based on the market value of your car (minus any unpaid excess, unpaid premiums, unused rego and CTP, and applicable Income Tax Credits). Then, you could use this payment to buy a new car. Or, if you hold our New For Old cover, we'd replace your car with a brand-new car of the same make and model, where available.
Want to know more about Bingle car insurance options? Compare our car insurance.