When you take out Comprehensive Car Insurance, you sometimes have two ways to insure your car: for an agreed value or its market value.
Both options determine how much money you’ll get if your car is written off or stolen – but they can be very different amounts.
Agreed value is the amount you and your insurer agree to insure your car for. The vehicle’s depreciation during the policy period has no impact on any payout amount you’ll receive following a total loss. It’s up to you to decide how much cover you need. You'll receive this exact amount if your car gets written off.
We provide agreed value cover with Allianz Comprehensive Car Insurance.
The market value is the price your car would likely sell for just before it was stolen or damaged beyond repair. It takes into account factors such as age, condition, and mileage.
We provide market value cover with Allianz Comprehensive Essentials.
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| Criteria | Agreed Value | Market Value |
| Premium cost | Typically higher – but offers certainty and control | Typically lower – because there's more uncertainty because of fluctuating value |
| Flexibility | Yes – you can select the value with the insurer, within a given range | No – determined by market conditions and depreciation |
| Stability of value | Stable – the value is locked in for the policy period | Unstable – the value can fluctuate with changes in the car market |
| Payout clarity | Certainty – you know exactly how much you’ll receive in a total loss | Variable – subject to the car’s market value at the time of a claim |
The market value of your car is determined at the time you make a claim. Typically, you'll receive a lump sum based on this valuation. We obtain these valuations from automotive industry resources like RedBook and Glass's Guide, which conduct extensive research to provide accurate pricing and valuation data for used vehicles.
It's important to note that these valuations might differ from the price you could get if you sold your car privately. For instance, some cars might sell for more due to their popularity and limited availability.
The market value takes into account factors such as the make, model, age, kilometres travelled, and overall condition.
In most cases, your car will depreciate over time. This means the payout may be less than you expected.
If you take out Allianz Comprehensive Essentials, you’ll be covered for market value.
Agreed value is a little simpler. Say your car is written off by a covered incident. When you make a claim, the insurer pays you the pre-agreed amount as a lump sum, regardless of market fluctuations. With Allianz Comprehensive Car Insurance, you agree on a set amount to insure your car for when you get coverage.
Additionally, if your new car is stolen or written off within two years of manufacture, you have another option. You can choose to receive the agreed value or have your new car replaced with one of the same make and model where available in Australia.
Keep in mind that regardless of whether you have agreed or market value cover, you’ll typically need to pay an excess. An excess is the amount you pay before your insurer contributes to your claim.
Good to know: It’s worth checking if your agreed value is appropriate at each policy renewal. For example, reducing the agreed value could lower your insurance premium.
We provide agreed value cover with Allianz Comprehensive Car Insurance. It allows you to lock in your payout amount and provides you with more certainty at claim time.
We provide market value cover with Allianz Comprehensive Essentials. Your premiums are typically lower with market value because the payout is based on how much your car would likely sell for just before it was stolen or damaged beyond repair. It takes into account factors such as age, condition, and mileage.
“You always think that insurance is a payment that just goes into a hole and no benefits.....until you have a claim. My wife's car was written off. Called Allianz from the scene. [Within] an hour my car was towed away and we were on our way in a rental vehicle. Claim was settled in less than 2 weeks. Amazing service all round. Thank you Allianz!" - Nathan
“Our claim was dealt with quickly and effectively. The fella I spoke to initially on the phone was very good, as was the assessor, who contacted us promptly and explained things very well. Our car was written off and a fair market value price was also promptly placed into our account. Overall we are very happy with the outcome." - Allianz Customer
“Faultless experience. Great staff, personal touch, and a fair result (I was surprised at how quickly we could agree on market value). They've secured a life member in myself." - Daniel
Want to read more reviews? Head to Allianz Car Insurance Reviews for more information.
With Allianz agreed value policies, you choose how much coverage you need within a given range. Be sure to include any changes, as well as:
You can switch from a Comprehensive Essentials (market value) policy to a Comprehensive (agreed value) any time, subject to eligibility. You can also switch from Comprehensive to Comprehensive Essentials, subject to eligibility. Get in touch and we can help with next steps.
This article has been prepared by Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL234708 ("Allianz"). In some cases, information has been provided to us by third parties and while that information is believed to be accurate and reliable, its accuracy is not guaranteed in any way.
Any opinions expressed constitute our views at the time of issue and are subject to change. Neither Allianz, nor its employees or directors give any warranty of accuracy or accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in this article.
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Any advice here does not take into account your individual objectives, financial situation or needs. Terms, conditions, limits, and exclusions apply. Before making a decision about this insurance, consider the relevant Product Disclosure Statement (PDS)/Policy Wording and Supplementary PDS (if applicable). Where applicable, the PDS/Policy Wording, Supplementary PDS and Target Market Determination (TMD) for this insurance are available on this website. We do not provide any form of advice if you call us to enquire about or purchase a product.
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