Understanding agreed value and market value car insurance

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A guide to understanding agreed value and market value car insurance

Updated March 6, 2024
Written by Kenneth Young
Reviewed by Adrian Taylor

Tips for understanding agreed and market values from our car insurance expert, Adrian Taylor

Adrian Taylor
Executive General Manager – General Insurance

Weigh up your options

If you’re looking for the peace of mind that comes with knowing how much you could receive from an insurer in the event of a write off, agreed value could be for you. However, not all insurers offer agreed value and those that don’t will simply apply market value at the time of the accident. You should contact your insurer to discuss this if there are any doubts or read your PDS.

Compare like-for-like policies

When shopping for a new car insurance policy at renewal time, make sure you are comparing apples to apples. This means that if you’re on an agreed or market value policy currently, make sure the policies you’re comparing use the same valuation method as well as the same excess, optional covers and payment frequency.

Contact your insurer around renewal time

If you have an agreed value policy, the amount the car is valued for may change automatically every year when the policy renews. Your insurer will provide this information in your renewal notice. Make sure you contact them if you need to negotiate a different price at renewal time.

Market value vs agreed value car insurance

What is market value car insurance?

Is market value the same as trade-in value?

What is agreed value car insurance?

What’s the difference between agreed value vs market value car insurance?

The pros and cons of market value and agreed value car insurance

Is it better to insure your car for market value or agreed?

Purchasing agreed value or market value car insurance

Can I choose agreed value or market value with third party car insurance?

What happens to agreed value car insurance at renewal time?

Meet our car insurance expert, Adrian Taylor

Adrian Taylor
Executive General Manager – General Insurance

As Executive General Manager of General Insurance at Compare the Market, Adrian Taylor is passionate about demystifying car insurance for consumers, so they have a better understanding of what they’re covered for. Adrian’s goal is to make more information available from more insurers, to make it easier to compare and save.