what is market value car insurance

Market value car insurance pays what your car is worth at the time of a claim, not what you reckon it’s worth after a wash and a wistful stare. Insurers use guides (like RedBook), recent sales, condition, kilometres and local demand to tally a fair price on the day. Compared to agreed value, premiums can be cheaper, but the payout can swing with the market—great in boom times, less great after depreciation does its grim work. It’s handy if you want fuss-free cover and aren’t precious about a fixed figure. If you need certainty (say, for a rare trim or lots of mods), agreed value is the tidier option—market value is the everyday all-rounder.