Should You Insure Your Car At Market Or Trade Value?

Should You Insure Your Car At Market Or Trade Value?

Many people ask whether they should insure their vehicles at market value or trade value. There is no correct answer; it all depends on the car and your personal circumstances. Let鈥檚 first define these terms, often used incorrectly. Retail value is the price you paid for the car, e.g., 100,000 currency units. Trade value is the price you would receive (reasonably) if you traded the vehicle in for another, e.g., 20,000 currency units if you鈥檙e a rough driver and the car was actually inherited from your grandmother. Essentially this is the price a trade-in establishment would give you, taking their profit into consideration. Replacement value is what you would pay to buy a similar car today. It covers trade value but also takes into consideration private sale. Market value is the average of retail and replacement value, i.e., 60,000 currency units. It is the amount you could reasonably have sold it for before it was stolen/ damaged/ you decided to sell it.

You can decide whether you want to insure your car at its market value or its replacement value. The latter will cost you a little more; more importantly, insurance companies often stipulate they will replace your car only in the first year or two. After that, as you can understand, it becomes too expensive for them. You should revalue your car each year. When you insure a vehicle, you must keep adjusting your premium in accordance with its changing value. On the other hand, if you inherited a Rolls Royce from your granddad and it鈥檚 still running, it may soon be worth a lot more than the petrol it runs on (probably quite a lot) and worth insuring well. But do choose one of these options. According to the South African Insurance Association (SAIA), around 65% of the cars on our roads today are not insured. It鈥檚 bad enough not being insured, imagine being involved in a prang with another motorist who is also not insured! There is another option for ensuring your car is insured at its real value.

It鈥檚 called top-up-insurance and is usually taken up when a vehicle is purchased through finance. How does it work? If you buy your car on finance, the insurance policy is ceded to the company through which you receive your loan. If for some reason you need to make a claim, the insurer will first pay the finance company to settle the outstanding finance debt, which leaves you debt free (to a certain extent). Another policy you may be interested in investigating, particularly if you purchase a pre-owned vehicle, is mechanical warranty insurance. This policy would however only be of value to you if you鈥檙e running a up market car. If you鈥檙e driving a runabout, a good service every 10,000kms will be decidedly more cost-efficient. The author specializes in Cheap car insurance in South Africa. Please Register or Login to post new comment. HOW TO IMPLEMENT BLOCKCHAIN SUCCESSFULLY? RIL's e-commerce push: Will Reliance Retail be the next Jio? High-Quality App Development in the USA Trends to Follow in 2019 and Beyond. CONFIDENT ENOUGH TO START A NEW BUSINESS?

A total of five Fuso Canter vehicles will be shown, of which two models in the new all-wheel-drive 4x4 version. The conventionally rear-wheel-driven light truck with high payload capacity is now complemented by this variant with improved traction which features engageable all-wheel drive. Its off-road capabilities make the Fuso Canter 4脳4 the ideal choice for all applications where operation on unsurfaced roads is required, for example on construction sites, in the energy supply sector and in service with the fire brigade. For municipal authorities, it lends itself to use as a winter service vehicle with snowplough and salt spreader. Its width of a mere two metres means that it can also negotiate narrow openings with ease. The Canter 4脳4, model designation 6C18, will be offered with a permissible gross vehicle weight of 6.5 tonnes, a two-metre wide comfort cab and a power output of 129 kW (175 hp). The all-wheel drive can be selected and deselected during a journey, thereby ensuring fuel-efficient operation. A differential lock for the rear axle is fitted as standard. The new Fuso Canter 4脳4 is powered by a four-cylinder turbo diesel engine with Euro V and EEV certification. Only the most powerful version of this 3-litre engine - developing 129 kW (175 hp) at 3 500 rpm - is installed on the all-wheel drive model. It boasts a maximum full-load torque of 430 Nm which is available constantly from 1 600 to 2 900 rpm. In addition to SCR exhaust aftertreatment technology, a combination of exhaust gas recirculation and fully automatic particulate filter regeneration ensures optimum emissions performance. If the vehicle is being used mainly for very short trips, manual regeneration of the particulate filter may be necessary owing to the low engine temperatures.

These negatives are the sales points that competitors hang their hat on when seeking advantage. Negative selling is not an attack on the competition. Negative selling is when you are up-front about a perceived deficiency in your product and turn that feature into a positive. Mercedes Benz automobiles are expensive (relative to Lexus, a direct competitor), costly to maintain, and fuel. Mercedes knows this. They have perfected a negative selling technique to turn these perceived flaws into strengths. Mercedes position is that safety and superior performance requires advanced engineering, strength in materials and thus, added weight (resulting in heavy fuel consumption) but this is overcome by a real safety advantage. 鈥淲ould you want to put your family at risk in anything less than the best engineered car on the road鈥? In one of my early ventures I had a direct competitor. His product was 100% natural. My product was synthetic. There is a real belief in many people that natural is always better. It is not. There are reasons that we live longer, better, healthier, more active lives than prior generations and yet consume copious amounts of products artificially enhanced with chemicals, preservatives and supplements.