Buying car insurance isn’t just about ticking a box (although it does happen to be on our grown-up list of responsible things to do, so there’s that). It’s also about making sure you won’t cry into your steering wheel if something goes sideways. We’d say that 1 of the most frequent questions we get asked is, ‘should you insure your car for agreed value or retail value?’.
No, don’t laugh. It’s a serious question and we really do get asked it a lot. And not just because we wanted to write about it.
Now that we’ve cleared that up, let’s break it down, no fluff, just the royal truth.
What’s the deal with retail value
Retail value is basically what your car is ‘worth’ on the open market today. That means if you drive a 2022 hatchback that’s been in a tiny fender bender, the insurer looks at what someone else would pay for it now, not what you paid for it.
The highs and lows of choosing retail value:
- Pros: Usually with this option you get cheaper premiums, and this is mostly because the insurer is taking on less risk.
- Cons: If your car is stolen or written off, the payout could be less than what you need to buy a similar 1. That shiny replacement? Well, that might cost more than your payout.
What about agreed value
First, let’s talk about what this value means. It’s not exactly rocket science, but for the sake of clarity, the agreed value is the amount that you and King Price agree upfront is what your car is worth. It’s like setting a royal benchmark. If your car is declared a total loss, that agreed sum is what you’ll get… Simple, clear, no surprises.
The highs and lows of choosing agreed value:
- Pros: Peace of mind. You know exactly what you’d get if things go pear-shaped and it’s actually ideal for brand-new cars.
- Cons: Slightly higher premiums because the insurer is on the hook for the agreed sum. But hey, it’s a small price for certainty.
Which 1 should you pick
Here’s the cheeky truth: It depends on your car, your budget, and how much stress you want to avoid.
What we’d say is that if your car is new, financed, or custom-fitted, then agreed value is usually the way to go. Of course, if your car is older or you don’t mind taking a bit of a risk on replacement costs, then retail value might be fine.
The king has your back
King Price doesn’t believe in 1-size-fits-all. You can even mix it up with optional extras like the king’s cab, tyre and rim cover, or little dings and tyre things to make sure you’re fully protected. And the best part? You can adjust your policy as your car ages or your needs change (no royal decree required).
If you don’t have the king’s magical touch in your life and for your car, then in the words of every overly dramatic director from the 90s, daaaahling you simply must get in touch!
Click here or WhatsApp us on 0860 50 50 50 for a commitment-free insurance quote.
5 FAQs
1. Can I switch from retail to agreed value later?
Absolutely. As your car ages or your needs change, King Price makes it easy to adjust your cover.
2. Is agreed value cover more expensive?
Slightly, yes. But think of it as paying for peace of mind… Less stress if your car is stolen or written off.
3. Will modifications affect my payout?
Only if you’ve told us about them! Agreed value takes your mods into account for a fair settlement.
4. Can optional extras help me save money?
Indirectly. Extras like the king’s cab or tyre and rim cover protect against extra costs so you don’t pay out of pocket.
5. Do older cars need agreed value?
Not always. If you’re happy with the market value payout, retail value is fine. Agreed value is best for newer or modified cars.