Do you know how much your vehicle is insured for?
Do you know what the market value of your vehicle is?
These two questions would affect most of our readers, basically anyone that has vehicle insurance!
So, what is market value?
The market value is the reasonable sale price of the same or a comparable vehicle. This includes any fixed plant or signwriting you may have on your vehicle.
What is the sum insured?
The sum insured is the value specified on your vehicle insurance policy. It is important to understand that you may not receive the sum insured if your vehicle is stolen or damaged beyond repair. Why? Because some vehicle insurance policies cover you for the vehicles market value, up to a maximum of the sum insured.
What does this mean?
Simply put, it means that it is your responsibility to set the sum insured of your vehicle based on the vehicles actual market value. Each year at renewal we suggest you review this sum insured and adjust if necessary. Our team are proactive about this and often highlight this in your renewal letter or on the policy documents as a reminder for you to review the sum insured.
I don't know much about cars, how do I know what my vehicle is worth?
The value of your vehicle changes over time, the age, make, model, mileage, modifications and condition of your vehicle are all factors and that's why we are unable to automatically adjust the value for you.
Here are some helpful tips to get you started:
Ask a Registered Motor Vehicle Trader for an estimated market value of your vehicle
Visit www.driven.co.nz and click on the free online calculator
Check out online platforms such as Trademe to estimate the value on your vehicle.
Contact a professional valuer such as www.turners.co.nz