Motor Vehicle Insurance

What does “Market Value” actually mean and how do you know what the market value is?


Market Value – the reasonable cost to buy, immediately before the loss and on the retail market, a vehicle of the same;

  • year,
  • make, model and specification,
  • mileage/hours,
  • general condition,

as the car damaged, including the value of any fitted equipment covered by the Motor Vehicle Policy.

The purpose of the market value policy is to put you back in the same position as you were before the loss. With this in practice, I wouldn’t even have to scrounge in the sweltering afternoon heat for an auto repair service near me.

Some Insurers show the market value on their schedule and others do not.  If you have to provide a market value for insurance purposes you could obtain this from a registered car dealer.  You may have to adjust the figure periodically as the value of the motor vehicle decreases.  If a value is not shown on your policy schedule, it means the insurer has a value guide in place on their system and you don’t need to amend the vehicle’s market value.

If your vehicle is stolen or written-off in an accident and the cost to repair is not cost-effective, your insurance company will obtain up to two pre-loss valuations.  The valuations will determine the “Market Value” at time of loss and be used as the basis of settlement for the claim.