Do you know the difference between the retail value and the market value of your car? Many people are not aware that you can insure your car under four different value options.
Retail Value: This is the average price you would pay for your vehicle if you bought it from a car dealer, and it is higher than the market value. The retail value includes the profit a dealer would make from the sale of your car. If the car were to be stolen or written-off you would be paid out a settlement amount based on its retail value.
Market Value: The market value of a car will always be lower than the retail value, and is determined by a number of changing factors including vehicle condition, mileage and service history among others. Under this option, your car will be insured for what it’s currently worth on the market.
Trade Value: Also referred to as book value, this is the average price a car dealer will pay you for your vehicle. Since the trade value is less than the market value you will pay a lower Car Insurance premium with this option, but your car will be covered for less.
Agreed Value: This is an agreed amount to insure your car for between you and your insurer.
Now that you know about the different insurable value options, let Hippo.co.za help you find the best Car Insurance quote!
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