What you need to know about agreed value insurance
So, you’re getting a commitment-free (and, of course, simple cheap) car insurance quote for your bab-we mean ‘car’, and you’re ready to go through the motions of telling us the mileage, make and model, and the details of the person who’ll be driving it most often, when suddenly… You stop.
Because we’ve just asked you if you want to get a quote for our newest kid in the castle: Our agreed value car insurance. You’re vaguely aware of things like ‘retail value’ and ‘market value’ but agreed value? Agreed what? Agreed when? With whom?
Relax. We’ve got you.
The king has introduced agreed value insurance, giving you way more choice and flexibility. Here’s a closer look at what we’re talking about.
Choosing the type of value
It’s standard procedure when you get car insurance to select the value that you’d like to cover your car for. Your options usually include ‘retail value’ and ‘market value,’ which are simple enough to understand.
Market value = What you’d be able to sell your car for at any given time.
Retail value = What it would cost to replace your current car from a dealer, taking into account its age, condition and mileage. If you go online and search for your exact car (the year, mileage, and more) the prices that come up would be the retail value.
What we’ve always known is that both of these values depreciate over time. Let’s say that 2 years ago, you ran a search online because you wanted to know what your car would cost to replace. (Hey, curiosity is a good thing, and we applaud all such thirsts for knowledge!)
When you Googled your car, you would’ve seen that it would cost you a certain amount of money if you had to replace it. But that was 2 years ago. Chances are that this price has dropped, which means that if you insured your car back then and it gets stolen today, your payout will be less.
And you won’t be able to replace your car with the same type.
Why this matters
If your insured car is written-off or stolen and not recovered, your payout wouldn’t be enough for you to replace the car with a brand-new model.
Ta-da (cue impressive entrance music)
Thankfully, there’s a solution in the form of our agreed value insurance option.
The king’s agreed value insurance is a lot like our excellently put-together comprehensive car insurance option. You still get cover for accident damage, theft, and hi-jacking, and damage to other people’s property (AKA third party liability) as a result of an accident that you’re involved in. You also need to add on any accessories and non-standard fitted extras for an affordable additional fee if you want these extras to be covered.
The major difference is that with our agreed value option, you can choose the insured value that’ll be noted on your policy schedule.
What you need to know
If you take out our latest and greatest agreed value insurance for your car, you essentially choose the amount that the car is covered for. This amount remains the same (no depreciation) for 3 years, starting from the date that your policy starts.
To recap:
Your car is insured for an amount that’s agreed on by you and by us.
The amount won’t depreciate for 3 years.
What comes next
Listen, our goal is to help you. We come up with products that we believe will give you more choice and will help South Africans who want to protect their finances when things go wrong.
Choosing the agreed value option gives you that added layer of security, knowing that if you had to claim for a new car because yours was written-off or stolen and not recovered, you would have more freedom in your choice of replacement. Because you’d receive exactly the amount you’d agreed on with us.
Want to check out our simple cheap car insurance? WhatsApp us on 0860 50 50 50 or click here to visit our website and request a call back.
