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An important reminder: Vehicle insurance – market value

  • June 3, 2020

Please review the amount your commercial or private vehicle is insured for.

Do you know how much your vehicle is insured for?

One or more of your vehicles are insured for market value. That means you’re insured for what your vehicle is worth. As the value of your vehicle changes over time, it’s important that you regularly update the amount that your vehicle is insured for and adjust it to match what your vehicle is worth. This will help avoid overstating the value or your vehicle or underinsuring it.

What is market value?

The market value is the reasonable sale price of the same or a comparable vehicle immediately before the loss, excluding GST and any signwriting, wraps or artwork.

What is the sum insured?

The sum insured is the specified limit listed on your insurance schedule. It’s important to understand that your sum insured may not be the amount you would be paid if your vehicle is stolen or damaged beyond repair. The most you will be paid, in the event of a claim is your vehicle’s market value immediately before the loss, up to a maximum of the sum insured shown in your insurance schedule. It is your responsibility to set the sum insured for your policy, based on your vehicle’s actual market value when you first arrange your insurance and to keep it up-to-date each year after.

How do I know what my vehicle is worth?

Vehicle values change over time depending on the vehicle’s age, make, model and market conditions, as well as many thing that are specific to your vehicle such as mileage, maintenance and modifications. That’s why we are unable to automatically adjust your vehicle’s sum insured for you. Here are some tools and resources that may help you work out the market value of your vehicle.

► Ask your Registered Motor Vehicle Trader (RMVT) – visit motortraders.govt.nz to check the traders in your area
► Visit driven.co.nz for a free calculator for light vehicles
► Check out trademe.co.nz for a good guide to vehicle sales prices
► Contact a professional valuer like:
– Manheim by emailing valuations@manheim.co.nz, or
– Turners at turners.co.nz

Once you know what your vehicle is worth, speak to your adviser and they will update your sum insured for you.

This does not apply to any vehicles that are insured for Agreed Value or Third Party Cover. If you have Third Party, Fire and Theft cover, then the market value is the most we will pay if the vehicle is stolen or damaged beyond repair by fire. This information is only intended as a guide. Policy limits and exclusions apply. Please refer to the policy wording for full terms and conditions.


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