Understanding what is covered by your car insurance policy can help you avoid unexpected costs in the future. So, how do you know if you have the right cover for your vehicle? Read below to see what factors come into consideration, so you can be confident in your decision.
Over the past two months we have looked at Type and Options for Insurance. Now let’s look at Market Value v’s Agreed Value
Market Value refers to the estimated price your car is worth on the open market at the time of making a claim. When assessing the market value, your insurer will consider a range of factors including the vehicle’s condition, age, make, model, and kilometres travelled. To get an idea of what your car may be worth, you can search for it in the Red Book or on car sales websites.
Agreed Value is a sum based on what you and the insurer agree to when you take out or renew a policy. An agreed value policy generally has higher premiums as the agreed value of the car is usually higher than what it would sell for on the open market (market value).
Current Global Conditions have seen considerable changes to this space with Market Value increasing due to limited supply. It is best to do your research on this prior to taking out the policy, and understand how much it would cost to replace what you currently have.
Information of vehicle value can be obtained through websites like www.redbook.com.au
www.carsales.com.
Custom Features
Customised Colours and Modifications including Accessories for 4wds need to be listed separately.
Custom or Prestige Vehicles may require a policy that is geared towards enthusiasts, or collectors.
Comparing Insurance Companies
Prices vary from company to company and from policy to policy.
It is important to compare like for like.
Same Excess- Same Options/Inclusions - Same Value
Write Off Vehicles deemed repairable are difficult to reinsure and a lot of research is required before making the initial purchase to ensure it is possible to do.