The Difference Between Agreed Value And Market Value
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Own a high-performance supercar? Chances are you’re going to want to ensure it has the best possible protection. When it comes to the world of luxury car insurance, however, it’s easy to get stuck in the nuances of each policy. Indeed, two terms that often surface are ‘agreed value’ and ‘market value’. So what do these terms really mean, and how do they impact your supercar insurance? Let’s explore this topic further.
What Does Market Value Mean In Car Insurance?
Market value refers to the amount your vehicle is worth at the time of an incident. It considers various factors like depreciation, the vehicle’s age, and any wear and tear or maintenance. The insurer would typically evaluate the current sale values of similar models in similar conditions to determine this figure. This means that, if you bought a car for a hefty price a few years ago, its market value is likely to be significantly lower by the time you need to make a claim.
What Does Agreed Value Mean In Car Insurance?
Agreed value, on the other hand, is a predetermined amount that both the policyholder and the insurer agree upon when the car insurance policy is created. This amount won’t change based on depreciation, instead remaining consistent throughout the policy term.
The Advantages Of Agreed Value Over Market Value
When it comes to supercar insurance, opting for a policy with an agreed value has a lot of advantages over market value. For one thing, agreed value provides clarity and certainty for both parties. If you own a luxury car, this ensures you’re more accurately covered against the price you paid for the vehicle and shields you from the rapid depreciation these cars can often experience.
It’s worth remembering that luxury supercars are often more than just modes of transport; they’re also an investment. They carry emotional value, are available in limited editions, and have often been customised to some extent. As such, their depreciation doesn’t always align with the general market trends.
By settling on an agreed value in your specialist sportscar insurance policy then, you’re receiving peace of mind that you’ll receive a pre-determined amount in the event the car is written off or stolen.
Agreed Value Supercar Insurance From Prestige
At Prestige, we appreciate the nuances and unique requirements of taking out luxury car insurance. As such, we ensure that agreed value is the standard for most of our supercar insurance policies. This commitment stems from our specialist understanding of the industry and our desire to provide our customers with the best possible protection.
Are you looking for supercar insurance to protect your own high-performance vehicle? Get in touch today. Our status as a chartered insurance broker enables us to find competitive policies that are tailored to your unique needs. Call us on 01202 754900 or fill out an online quote form and we’ll back to you to discuss your specialist sportscar insurance.