Comprehensive Car Insurance - Market Value or Agreed Value


My comprehensive car insurance is up for renewal (Budget Direct), and I noticed that in the renewal notice they changes from Agreed Value to Market Value. I assume this is not in my favour but would like to hear opinions.

The car is a 4x4 (2008 BT50) with loads of additions and modifications, all specified in the policy. Would they be taken into account if "Market Value" has to be determined?

Body - Canopy
Misc - Awning
Wheels - Non Standard Wheels
Misc - Bull Bar
Elect - Cb/Uhf Radio
Mech - Electric Brakes/Trailer Controls
Elect - Stereo/Entertainment System
Misc - Fridge (Personal)
Misc - Shelving/Storage And Others


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  • Market value is for base vehicle only unless they have an option to specify the mods.

    If you have King's camping accessories, market value is fine.

    If your mods are top shelf, agreed value.

  • +3 votes

    Market value = argue about it at the time of write off, wont cover accessories very well (as you rarely can buy second hand accessories/a vehicle with the same accessories), cheaper policy

    Agreed value = you know exactly what you are going to get, you make the decision, usually more expensive

    I always try for agreed value. Even my sub $3000 market value 20 year old vehicle paid out $6k agreed value when destroyed by hail.

    • Thanks.

      It seems to me that most insurers limit how much you can insure a car for above/below its market value (for RAC for example it looks like 30%).

      • We encountered this issue with my partners vehicle which is a ute with a custom canopy. Standard insurance companies wouldn't cover it for the replacement cost of the whole vehicle so we went through a broker instead and were able to cover the vehicle for it's actual replacement cost.

      • Obviously, no one is gonna insure your 10k car for a 20k agreed value but you also don't want the hassle of being offered a low ball market value of 5-7k when it's written off either

  • Definitely go agreed value if you can, saves headaches down the line.