INSURING YOUR CAR
What’s the difference between amount covered and market value?
7 January 2018
Insurance terminology can leave even the savviest shopper in a head-spin. And being unsure about what or how much you’re covered for is the last thing you want when you’re looking to insure your vehicle. We take a look at the difference between amount covered and market value, so when you get a car insurance quote or flick through policy documents, you’ll know what both terms mean and how they impact how much you’re covered for.
Your “amount covered” is the amount your car is insured for. Which means, if you need to make a claim for loss or damage to your car, this is the most an insurer will pay. The amount covered can also include the value of accessories and modifications that are fitted to your car, registration, CTP/MAI Insurance and GST.
Some insurers may refer to agreed value, which is when the amount your car is covered for is adjusted and agreed upon by both you and the insurer. For example, with an agreed value car insurance policy you can choose to insure your car for less than what it’s worth or more than what it’s worth. With GIO Car Insurance, you have the option to adjust the amount you would like to insure your car for – within a specified range – under your amount covered. Adjusting your amount covered will impact on your premium.
Whether you choose to adjust your amount covered or stick with a market value amount will depend on several factors. Some of those factors to consider are: whether you’re trying to save on your car insurance premium, the age of your car, and the determined replacement value of your car (you may believe your car is worth more, or less, than the determined amount due to its condition, service record etc.).
If you’d like to know more about the amount covered on your car insurance policy, then get in touch with one of our knowledgeable insurance specialists today on 13 10 10. Alternatively, get a Car Insurance quote online and don’t just think you’re covered, know with GIO.
Insurance issued by AAI Limited ABN 48 005 297 807 trading as GIO. Any advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it. Please read the relevant Product Disclosure Statement before you make any decision regarding this product. The Target Market Determination is also available.