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Things you need to know about market value

Haven't reviewed your business vehicle’s market value in a while? Here’s why it’s important.

It’s something we kinda don’t like to think about or even believe will happen to us. But if your business vehicle is stolen or damaged beyond repair, the most you’ll be paid is its market value immediately before the loss, up to a maximum of the sum insured shown in your AMI insurance schedule.

Your business vehicle is insured for market value. That means you’re insured for what the vehicle is worth. As the value of your vehicle changes over time it’s important to check your sum insured regularly. If you think your sum insured is too high or too low, you should adjust it to match what your vehicle is worth.

What is market value?

The market value of your vehicle is the reasonable sale price of the same or a comparable vehicle immediately before the loss, excluding GST and any signwriting, wraps or artwork1.

What is the sum insured?

The sum insured is the specified limit listed on your insurance schedule. It’s important to understand that the sum insured does not determine the amount you’ll be paid if your vehicle is stolen or damaged beyond repair.

It’s your responsibility to set the sum insured for your policy based on your vehicle’s actual market value when you first arrange your insurance and to keep it up to date each year after. This will help avoid overstating the value of your vehicle or underinsuring it.

Need some help working out your business vehicle’s market value?

Business vehicle values change over time depending on the vehicle’s age, make, model and market conditions, as well as many things that are specific to your vehicle such as mileage, maintenance and modifications. That’s why we’re unable to automatically adjust your vehicle’s sum insured for you.

Here are some tools and resources that you may find useful to help you work out the market value of your business vehicle.

  • Ask your Registered Motor Vehicle Trader (RMVT) - visit motortraders.govt.nz to check the traders in your area
  • Visit driven.co.nz for a free calculator for light vehicles
  • Check out Trademe.co.nz for a good guide to vehicle sales prices
  • Contact a professional valuer like:
    • Manheim by emailing valuations@manheim.co.nz, or
    • Turners at turners.co.nz

Once you know what your vehicle is worth, give us a call on 0800 782 838 and we’ll update your sum insured for you.


1 The policy also provides cover up to $5,000 to cover the reasonable cost incurred for replicating any signwriting on a replacement vehicle.