Vehicle insurance can feel very daunting – especially when you don’t really understand the various terms and jargon used. One of the questions often asked by our clients is the value they should insure their vehicle for.
Within vehicle insurance you have the option between retail, trade, market value or replacement value. It’s important for you understand the difference in order to make an informed decision.
Retail value: this is the value that your vehicle will sell for at a dealership.
Trade value: this is also often referred to as the book value of the vehicle. This is the average amount a dealership will pay for your vehicle.
Market value: this is a general amount calculated by many variables such as the vehicle’s service history, condition, accident history and mileage. The formula used in this instance looks as follows: Market value = (Trade value + Retail value)/2
All these options have their place within the insurance industry and each has a different impact on your premium. Many clients who never queried the value that their vehicle is insured for is left very disillusioned when they suddenly find themselves in a position where their insurance pay-out amount simply won’t cover a vehicle equivalent to what they had.
APBCO Brokers offer personal insurance packages with the option to insure your vehicle at replacement cost. This means that you will not have to settle for a lesser vehicle than what you were used to driving in the event of your vehicle being stolen or written off.
If you have any queries regarding your vehicle insurance and need some guidance on which option will suit your personal needs and requirements best, please contact us here for a no-obligations consultation.