Market Value, Agreed Value and Club 4X4 Value – there is a difference!

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??

Market Value

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 Glasses Guide (who we use). The factors that go into Glasses Guide’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 Glasses Guide indicates at the time of your quote, but when it comes to paying a total loss claim, determination of the payout will consider Glasses Guide as well as the general condition of your rig.

Positive: Lower Premium

Negative: Uncertainty around payout for total loss

Agreed Value

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 Glasses Guide 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 Glasses Guide 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.

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?

Happy Touring

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Comments 33

  1. I recently insured my 2009 Mitsubishi Triton GLX-R through you guys and it was great to be able to insure it for what it is actually worth with the modifications. I purchased it from an old bloke who had set it up to go touring.. and then didn’t. It had only done 34,000kms and already had the canopy, nudge bar, roof racks, awning, dvd player and quite a few other upgrades. I’ve since added a UHF, spotties and will be adding a bullbar, winch and a snorkel soonish. Nobody else would even come close to the agreed value that you guys did. Pretty stoked to have it fully insured.

    1. Post
  2. Yep , thanks Guys for going into a fair bit of detailed discussion and photos to cover my truck camper Isuzu NPS 300 4×4. Great stuff.

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  3. My insurance company has market and agreed value. I have a 2004 Mitsubishi Challenger with 60,000 ks on it. It is insured on agreed value. The agreed value is NOT a value agreed between the company and the owner. The agreed price is set by the company and bugger the owner. It devalues each year also set by the company – mycar company. Glen.

    1. Post

      Hi Glen,

      I wont comment on how other insurers value the vehicle – but when you come to an “agreed” value on your vehicle (not including modifications) with us you get to pick from an upper and lower range. Whatever amount you pick is what you will get paid out if it is deemed to be a total loss during the 12 months period of your policy.

      It does devalue each year – and so it should, the price you pay for a brand new car isn’t what you get when you sell it 3 years down the track.

      One piece of advice i give everyone is when it comes to valuing the vehicle (again, forget the modifications/accessories for now) – if you aren’t happy with the upper limit for an agreed value, as for more. You may have a very low kilometre unit for example. The other day we had the cleanest TD42 GU Cab Chassis i had ever seen. The customer wasn’t happy with the highest agreed value immediately available. We asked him to send in some photos of the interior, dash cluster for mileage under the bonnet etc and we were able to give him 5k more as a result.

      We insure enthusiasts, we are flexible for these sorts of cases, so don’t be shy in asking 🙂


  4. How are accessories valued?
    I have nominated as an accessory, my eight year old roof top camper i paid $5,500 and it is written off in an accident.
    Is it going to be replaced or indemnified

    1. Post

      Hi Peter,

      Hope you’re well.

      Initial valuation will be set by the customer. Once the overall value reaches a certain level we may require photos and a list of the accessories/modifications with values attached to each. THe underwriter will view both these articles and depending on general condition or information such as age may depreciate the value as appropriate.

      When it comes to claim time, should the vehicle be a total loss you get the entire amount, should individual bits be damages you will be paid out.

      Hope that makes sense


  5. This is a revelation!! I am currently getting my 2012 Prado ready for towing the camper trailer we plan to buy and have thought that the suspension, radio, chip and God knows what else will be done will add no value at all to the rig. I now think that I will be seeking a quote when renewal time comes along.

    Thanks for the article.

    PS: Does Club 4×4 insure camper trailers?

    1. Post

      Hi John,

      Thanks for the comment – definitely give us a call when you’re ready – we’re confident we can give you the best coverage in the country.

      As for your camper trailer – we certainly will cover it!


  6. If I insure for market value and I have added $25,000 of extras and my vehicle is written off, my insurance company will only pay for market value.
    What happens to the extras I have added?

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      Hi Peter,

      It depends on the insurer. Some may let you remove them (if they’re salvageable) and some will say they need to stay on the vehicle.

      One thing is for sure, you definitely don’t get paid the 25k.



  7. I was after a quote for Australia wide comprehensive insurance on my cab/chassis Isuzu nps 250 ( nps 300 down rated to a GVM of 4.490 kg.).

    This truck is my daily drive / tradie ute.

    Running on super singles $3,400
    with 37×12.5R17 tyres $3,000
    Duel battery system $ 400
    Voltage reducer $ 300
    24 volt air compressor, horns and air tank $ 350
    APE 12,000 lb electric winch $2,700
    200 litre stainless steel watertank $1,500
    200 litre second fuel tank $ 500
    Passenger bucket seat $ 350
    UHF radio $ 350
    Aluminium Dura tray $3,500
    Towbar $1,000
    Duel spare wheel carrier $ 200

    For trips away we have my homemade slide-on camper $?,000
    115 litre 12 / 24 / 240 volt fridge $1,500
    2 x 60w solar panels and regulator $1,200
    2 burner stove $ 650

    That will do for starters.

    1. Post


      Sounds like you have a pretty sweet setup there.

      Unfortunately in order to get a quote you will need to give us a call (online will not give you a result due to the nature of the base vehicle). Call us on 1800 CLUB 4X4 (258 249) and we will help you get a quote.


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  13. So what about veteran aged and collectable type vehicles that actually go up in value each year?
    People who own such vehicles generally keep them in pristine condition and make sure they don’t deteriorate with age.
    Its painfully frustrating having to go through the tedious process of renegotiating insurance every year with companies who only have their own bottom line in view. Because it’s not just limited to vehicle insurance, but all types where the insured item is nonstandard.

    1. Post

      Hi Claire,

      Stay tuned we are developing something for these special cars and launching soon.

      In the meantime, i can tell you from my personal experience that if you really care about the car, you just need to go through the steps every year. I’ve got another vehicle, insured with another company and has been for over 15 years – i call them every year and sometimes need to drive it in to their premises to get what i want.

      Not sure this will change anytime soon.


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  16. You won’t insure my car and it’s modifications because I paid a lower amount for it.

    The reason I got it cheap is because it needed a few grand thrown at it to get it to roadworthy standard!

    I was also told that you don’t use redbook for valuations, just a guide?

    “Glasses and Redbook are a guide, not a vehicle valuation service”

    This was advised by your sales team..?

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  20. Hi
    Can you tell me what section of the Insurance Contracts Act requires Club 4×4 to limit insured value to the purchase price paid within the last 12 months. Our TD42 SWB was purchased as an incomplete car and we’ve spent 20k on furnishing it for 4wdriving. Club 4×4 said the Act limited them to the purchase price of 6k which is less than the cost of the accessories. So much for covering accessories as the web site says. No other insurer has limited us on other cars we have bought and then insured. Seems very odd.

    1. G’day Eric,

      If you want to insure a vehicle, we can only insure it for the actual financial loss you would incur under the Insurance Contracts Act. I’ll find the section for you. However, if you have spent money on mods/accessories since the purchase, we can add them to that cost for sure. If that hasn’t happened, please let me know!

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