It would seem that the terms “Market” and “Agreed” value have been around forever. We still get questions and hear stories from potential customers about how their vehicle gets valued by their current insurer. Often the conversation starts quite uptight and defensive from the enquirer’s perspective, but by the time we’ve explained “Club 4X4 Value” to them, the defensiveness turns to disbelief, then ultimately, relief.
We are of course talking here about the value that is assigned to your vehicle – the insured amount. This is the amount that you will get paid if the vehicle is declared a total loss and it is also the amount that repair costs will be compared to in determining a total loss. The insured amount also determines the premium you pay; the higher the amount, the higher the premium.
So what do all these terms mean??
As the name suggests, if you decide to insure your rig for Market Value, you are choosing to have coverage for the price that is dictated by the market. This figure is available through valuation organisations such as Redbook (who we use). The factors that go into Redbook’s determination include age, average kilometres for such a vehicle and what the market is currently paying. Your premium will be set based on what Redbook indicates at the time of your quote, but when it comes to paying a total loss claim, determination of the payout will consider Redbook as well as the general condition of your rig.
Positive: Lower Premium
Negative: Uncertainty around payout for total loss
With an Agreed Value you have the opportunity to nominate a value for your rig between an upper and lower range. This range is dictated by Redbook and as with Market Value is based on age, mileage and what the market is paying at the time.
Agreed Value is just that, agreed. There are many instances where a customer isn’t happy with even the highest number. We had an example yesterday with a customer we were speaking to at the Adelaide show that had a TD42 cab chassis GU – with, get this, 50,000 kms on the dial!!
Don’t forget, if you’re not happy with even the highest number in the range, you can ask for more – this will certainly necessitate detailed photos and other information. The TD42 is a great example why mainstream valuation organisations and the general insurers who rely on them aren’t fit for what we do as enthusiasts. At Club 4X4 we understand and we are happy to take a look to determine if we can in fact do more for you.
Positive: Certainty around your payout for total loss for the term of the policy
Negative: Higher Premium
Club 4X4 Value
One of the key differences with a Club 4X4 Motor Insurance policy is the way we value your rig. Now we do have Market and Agreed value available to set a value for your rig – this is a given. And yes, we will be happy to look at that FJ40 and work with you to give it a realistic value, not what Redbook says. Where things get really interesting for us is what we ask once we have determined the value of the rig itself.
The next question we ask is around the modifications and accessories added to the rig and what they are worth. Now we all know its not hard to spend 5, 10 even 20 thousand dollars adding pieces to a stock fourby to have it more suitable for our needs, so its important to have a good think about it. The value you nominate will then be added to the value of the vehicle for a Club 4X4 Value.
The above graphic displays how it has worked for our own MobileHQGU. Where we selected an agreed value of $42,000 for our 2013 Y61 wagon, then we added $25,000 of accessories and modifications. MobileHQGU is insured for 67,000.
This is not something special you have to beg and plead for, it’s just how we do it, everyday, every quote!
Why would you risk losing such a significant investment? Could you afford to replace your adventure machine if the worst were to happen?