Taking out car insurance may be less of a stock standard procedure than many motorists realise. One of the most important factors to consider when choosing the appropriate level of cover is the value of the vehicle.<\/p>\n\n\n\n
Siyakha Masiye, spokesperson at MiWay Insurance, explains that there are different \u201clevels of value\u201d. These include retail, market, trade-in and special agreed value. <\/p>\n\n\n\n
\u201cEach of these value options has specific implications for the amount the car is insured for, and ultimately, the amount that can be claimed for in the event of an accident or write-off. The choice that car owners make will depend on a range of factors. It\u2019s important for motorists to be equipped with the right information on what these value options mean.\u201d<\/p>\n\n\n\n
The retail value of a car refers to the current selling price on the dealer\u2019s floor as per the TransUnion Dealers\u2019 Guide. A car\u2019s retail value will match the purchase amount and the level of value most insured parties opt for when taking out cover. <\/p>\n\n\n\n
\n Having a car insured for its retail value means that in the event that the car is completely written-off and a claim is processed, the insurer will pay out the amount needed to replace the vehicle with one of the same make or model taking into consideration the condition of the car and the mileage<\/span>.<\/p>\n\n\n\n Some motorists choose to insure their vehicle at its market value, which is the price it would yield if sold under current market conditions. It is the average between the vehicle\u2019s retail and trade values. It is lower than the retail value. <\/p>\n\n\n\n The claim calculation will consider factors such as depreciation, condition, and market trends. Insuring a car at market value exposes the insured to more volatility.<\/p>\n\n\n\n Some policyholders may opt to insure their vehicle at its trade-in value, which is the amount the car would yield if it were traded in at a dealership or retail outlet. This is also commonly referred to as the \u2018book value\u2019 of the vehicle.<\/p>\n\n\n\n Some insurers offer a \u201cspecial agreed value\u201d option. In these cases, the car owner will enter into an agreement with the insurer that accounts for a predefined value over a specified time period. This means that if the car is written off or stolen, the insured will know exactly what payout to expect in the event of a valid claim. <\/p>\n\n\n\n Typically, these types of insurance agreements are reserved for classic and rare vehicles. <\/p>\n","protected":false},"excerpt":{"rendered":" Taking out car insurance may be less of a stock standard procedure than many motorists realise. 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value<\/h6>\n\n\n\n
Trade-in value<\/h6>\n\n\n\n
Agreed value<\/h6>\n\n\n\n