My Car’s Market Value

My Car’s Market Value

At the outset, buying car insurance might seem like a simple process – and it may be if the person choosing coverage is single, and has one car that they own outright, and a clean driving history. For the majority of drivers, for whom this is not the case, an independent car insurance agent is the ticket to making sure they are getting adequate coverage for their vehicle at a reasonable price. This starts with knowing your car’s market value.

One of the most important factors to know and understand when purchasing car insurance, evaluating existing coverage for gaps or exclusions, or assessing insurance needs when buying, selling, or trading in a vehicle, is a car’s market value. Knowing this can help a current or prospective insured ensure that they have sufficient auto insurance coverage, so that their vehicle is protected in case of an accident, loss, or claim.

For people looking to buy a new car insurance policy, an independent insurance agent will explain that one of the first steps to take is for that agent to gather information about the vehicle or vehicles to be insured. He works with insurance providers representing a number of different companies, which allows him to determine the available policy that is right for a certain person and his or her vehicle. One of the initial questions that an independent insurance agent will ask is about a car’s make, model, and year. Knowing this can help him in examining a car’s market value, which will be useful in considering its owner’s insurance requirements.

Also, an understanding of the market value of a car can come in handy when trading in a vehicle, or buying a used car. While an independent insurance agent will not be the one that an insured will work with directly on this kind of transaction, he can help a car owner assess the market value of a vehicle so that they can be more prepared to negotiate with a dealer when the time comes. He can also direct a person to resources provided through insurance companies, the internet, and at their local library, which can be useful in evaluating a car’s market value based on sales of similar cars, the year a vehicle was produced, and various other factors.

Some of the other things that an agent will need to know in order to guide a person in determining the market value of their car are the condition of a vehicle, like whether it has substantial wear and tear, body damage, or high mileage. He will ask about whether a car has been involved in any collisions with other cars, or single car accidents, such as hitting a tree or street sign. He will want to know about any notable features of a vehicle, like power steering, a built-in security system, or custom parts, and will probably ask about the interior of a car, including whether it has leather or fabric seats, and if it has automatic locks and windows, or a sun or moon roof.

As an agent can explain, knowing the market value of an insured car can also come into play in the event of a total loss of a vehicle. If a car or truck sustains severe damage in a crash and is deemed to be a total loss by an insurance company, they will usually pay out a settlement to cover the value of that car or truck at the time of the loss. The market value of the car is something that an insurer will take into account in evaluating this settlement amount, along with other elements, depending on the situation. An independent insurance agent will address this in greater detail, but in case of a total loss, market value of a car is typically its replacement cost at the time of the crash.

Buying auto insurance coverage through an independent insurance agent means that a car owner has a trusted source to turn to in the event of an accident, or with questions about his or her policy. If the need arises, an experienced independent insurance agent will help an insured get through the claims process. And, even before that, he will make sure a person has adequate auto insurance coverage, and can help them evaluate the market value of their car.

While market value can impact premium, credit score is usually a bigger factor.

Other Enhanced Insurance articles related to Auto Claims:

Bodily Injury in a Car Accident; Are You Covered

What to Do after a Hit and Run Accident

Salvage Value of My Vehicle

Options When Your Car Is Totaled

Who Is At Fault in a Car Accident

What to Do After an Accident

How Is the Value of My Car Decided

Who Decides What Will Get Fixed on My Car

What Does It Mean when a Car Is Totaled

How Much Will It Cost to Fix My Car

What Does It Mean when a Car Has a Salvage Title

What Do I Do If I Am Dissatisfied with My Auto Insurance Claim

Enhanced Insurance is not written by attorneys. If you’re looking for legal advice, you need to contact a lawyer. Further, insurance practices and forms change constantly and are varied from state to state. For definitive answers in your area, contact a local agent.

While the majority of people want an agent involved in their purchase of insurance, many people want to see if they can save money by buying direct from the insurance company. Others want to try a direct quote to make sure the premium they’re now paying through their local agent is fair. If you want a quote for your coverage, click on the competitive quote button on the right side of this page.