Auto Insurance | Did you know the market value?
When informed about auto insurance, must take into account the fine print of the policy conditioned. Among all these sections and subsections of technical formulations is the answer to whether, for example, in case of accident will get a strong compensation for the value of your wrecked car/auto.
Inattention can lead us to commit the imprudence of hiring auto insurance to all risk our car for seven years, thinking that in case of total loss, the insurer will return a sufficient amount to hiring a new vehicle features like. It is necessary to note that there are major differences between the policies of different insurance companies’ car, but as a rule after the fourth year of the vehicle virtually all car insurers cover only the so-called market value of the car which, as time passes, it is decreasing.
The market value is the sales value of the damaged car. Obviously, the value of a wrecked car seven months has no bearing with a car with more than seven years old, and then the compensation obtained will be very different. Therefore, when deciding whether to hire us as a consumer compensates auto insurance all risks for a vehicle with several years old is very important to compare the cost of insurance to the market value of the car.
How is the market value calculated?
The age of the vehicle is key to understanding this concept. The market value is, technically speaking, compensation for the assessment of sale at the time of the accident. That is, the user would get the money if you sell your auto at the time of the accident. This assessment scales is about respecting the characteristics and age of the car and does not include the process of repairing the damaged auto makes function.
What coverage does my auto/car?
To know what we will get compensation for the damage to our vehicle (theft, fire or accident) in case of disaster should be reviewed carefully the general conditioning of our insurance. The most common is that during the first two years of the automobile companies to compensate for the value of new, years three and four times a market value ‘improved’ (usually equal to the market value increased by 30%) and from the fifth year and only by the market value of the car.
However, due to the large differences among insurers in the process of choosing a policy, it is vital to make a proper comparison of auto insurance before making a decision, assessing the relationship between the level of coverage and the price offered because not always the cheapest auto insurance is the best choice. There are policies that apply e.g. the market value in their allowances from the second year of the car and in the event of total loss that may pose a more than 5,000 € difference in the compensation to be received by the insurer.