The post Compare Car Insurance |
insuranceblog.us article about Blog insurance this times many
people want to know !! Today, Begin insuranceblog.us find Compare
Car Insurance | insuranceblog.us more this post ! You are watching
bài : insuranceblog.us” Đánh giá về Compare Car Insurance |
For more information please visit: http://www.comparethemarket.com
The key difference between market value and agreed value car insurance is that with an agreed value policy, you know the total amount you’ll be covered for in the event of a claim as this amount was set when you bought the policy or renewed it.
It works like this:
Your car is likely insured for its market value, which refers to the value of the car in the present day and not the price you paid when you first bought it. Market value is typically calculated using an average price by comparing other cars of the same make and model that are in a similar condition to yours.
If repairs to your vehicle cost more than its market value (e.g. the car is a total loss and gets written-off after an accident), your car insurer will instead pay you the market value of your car or provide a replacement that has a similar market value.
This payout is subject to the terms of your policy. For example, you may be paid the market value of your vehicle if it was damaged in a bushfire through a Third Party Fire and Theft or comprehensive policy, or during a car accident with a comprehensive car insurance product.
If your car insurance policy offers an agreed value option, this means you can set the value of your car with your insurer. This can be handy because a car insured for its market value may lose such value over time. On the other hand, having an agreed value means you’ll receive the same payout on the day your car is written as you would have on the day you took out your policy. However, keep in mind that choosing an agreed value over market value may increase your premiums.
Furthermore, some agreed value policies do lose value over time, but at a set rate rather than the value in the car market.
Posts related to