When it comes to insuring your car, one of the most important considerations is the amount you will receive if your car is stolen or written off.
To determine this amount, it’s essential to understand the different types of values that you can insure your car for. These values include retail, trade, and market value.
The retail value of your car is what it would sell for at a dealership and is often the closest value to the replacement cost. The market value takes into account variables such as mileage, vehicle condition, and service history, and is the average of the retail and trade values. The trade value, or book value, represents the average price a dealership would pay for your car.
It’s generally recommended to insure your car for the retail value, as it’s the average amount a dealer would sell it for if it’s stolen or written off in an accident and is usually higher than the other values. If you’re unsure which value is right for you, Fachs Insurance Brokers has a team of insurance brokers ready to talk you through your options and help you find the best coverage.
By understanding the different values and making an informed decision, you can ensure that you have the right level of protection for your car.