The ultimate guide to car insurance: from why you need it, the types of car insurance on the market, what impacts your premium to how to claim or even complain about your insurer.
31 min read
What value is my car insured for?
The value your car is insured for will vary from insurer to insurer but the three most common values from highest to lowest are: • Retail: The average amount car dealerships would sell your car for. • Market: The amount you would sell your car for if you were to sell it privately. • Trade-in: The average amount car dealerships would pay you for your car when trading it in.
What value will my classic car be insured for?
For classic cars, your insurer would generally ask you to provide them with the value you want to insure your car for. This would usually require you to get a valuation from a reputable car dealership or valuation specialist. Your car will then be insured for that amount.
Why does my car depreciate in value over time?
Cars generally start losing value as soon as they are driven off the showroom floor. This is mainly because of that fact that it's been used, causing wear and tear but also because they become out of date. Newer models are released regularly, which generally lowers the demand for older models, in turn reducing the resale value of your car.