Suppose you have just bought a used car from our Parramatta Road car yard. Now you have your vehicle, it is time to consider car insurance.
It can be challenging to find the best deal, and it can also be confusing. Let's talk about one aspect of car insurance: market value versus agreed value.
The name gives a little clue about market value – the amount of money your car is worth in the current "market." Bear in mind that market value can fluctuate depending on demand. Generally, a vehicle's market value is based on what similar cars in the same condition are worth, combined with the average replacement price. Market value even includes mileage.
An insurer typically determines market value by comparing your car to the market value of other cars of the same make, model, age, mileage, and overall condition.
One of the most significant benefits of insuring your car for market value is that premiums can be cheaper than if you insure your vehicle for an agreed value. This is because your car depreciates over time and market value considers this.
Agreed value is the amount you and your insurer agree your car is worth regardless of depreciation during the policy term. If your car is a write off or stolen and unrecovered, you'll know exactly how much money you'll receive.
Overall, insurance premiums for agreed-value policies tend to be higher.
This really comes down to personal choice - there isn't a right or wrong answer. Speak to your insurer and work out what will work best for you. Deciding between market value or agreed value depends on several factors:
• How much do you value your car compared to the market
• The amount you want to spend on premiums
• Your car's age.
A vehicle's value decreases as it depreciates, so the older your car, the less you'll get back in a claim.
At Tony Lahood Motors, we take pride in providing safe, top-quality used vehicles at affordable prices. We consider ourselves the best secondhand car dealers in Parramatta Road. Our team is ready to help you with any questions or safety concerns; give us a call, and we'll talk you through them.
Whether you need a secondhand car or are thinking of buying one soon, Tony Lahood Motors Sydney can help. As experienced used car dealers, we stock some of the best-used cars in Australia, all with great finance options.
Contact Tony Lahood Motors today, the trusted name for the best used car sales in Parramatta Road, Sydney.
