.svg)
What’s the Market Value of My Car?
What’s the Market Value of My Car?
Written by
Kervin Mathew
Edited by
Ellie Garran
Reviewed by
Adrian BennettCompare car insurance policies the easy way
Save time and effort by comparing a range of car insurance quotes with iSelect
Long story short
Factors like your car’s age, condition, and features drive its market value
Mileage, accident history, and servicing records also help shape what your car is worth.
You can get your car valued online or in-person
Online tools give a ballpark figure, but in-person appraisals offer a more accurate, detailed assessment.
Your car’s market value factors into your car insurance costs
A higher market value generally increases your premium but could also mean a higher payout if your car is a total loss.
Agreed-value cover gives you more certainty, but it’s generally more expensive
It’s all about weighing up whether you’d rather lower premiums or a higher payout.
What’s the market value of a car?
A car’s market value is a reasonable estimate of how much it would sell for today on the open market. It’s a helpful thing to know if you’re trying to sell or buy a car – or if you’re just curious about how much your car is worth.
When it comes to car insurance, your car’s market value is one of the many factors that can influence your insurance costs – a higher market value typically contributes to higher premiums. A car’s market value may also determine your insurance payout in the unfortunate event of a total loss.
Because cars are depreciable assets – that is, their market value usually keeps dropping throughout their running life – insurers sometimes offer another option as a way to ‘lock in’ your car’s value if you want more certainty with your payout. This is called ‘agreed value’, and it means exactly what it sounds like: you and your insurer agree on the amount to insure your car for the insured term.
What’s a valuation?
A valuation is like a car’s report card. Mostly applicable to used cars, it’s an appraisal that accounts for various characteristics – like a car’s age and condition, make and model, and distance travelled – to calculate its market value.
Let’s look at a couple of fictional examples of how a valuation might play out for two very different cars.
Market value of car A
- Make and model: 2022 Toyota Yaris
- Kilometres driven: 8,000
- Accident history: None
- Exterior damage: None
- Interior condition: Near-new
Estimated market value: $24,000
Market value of car B
- Make and model: 2010 Holden Captiva
- Kilometres driven: 160,000
- Accident history: Yes
- Exterior damage: Major (dents and rust)
- Interior condition: Poor (dust and mould)
Estimated market value: $1,850
In most cases it’s a combination of the above factors (and many others) that helps determine a car’s value – although at times whether a car has a high or low market value can be clear as day!
Helpful tip
If you’re trying to work out which car insurance policy works for your car, consider this:
With an agreed-value policy, your car is insured for a fixed value over the insured term. And insurers will use this amount to calculate your insurance payout if your car becomes a total loss. An agreed-value policy might be worth considering if you believe that a standard market valuation doesn’t do justice to your car – say if it’s a classic or vintage model or one with premium mods.
A market-value policy is usually the ‘cheaper’ car insurance option. It cuts out the life admin that involves negotiating an agreed value for your car with your insurer each time you renew your policy – which might involve providing costs of accessories, a list of modifications or getting an independent valuation.
Adrian Bennett
General Manager for General Insurance
Why would I need to know my car’s market value?
Knowing yourself is the beginning of all wisdom, they say. In the same vein, knowing how much your car is worth could be a wise move on a few counts.
- If you’re selling your car or buying a used one, getting savvy with its market value could help you avoid being shortchanged or taken for a ride with offers.
- In terms of car insurance costs, you might have a better idea of what you can expect to pay because insurers tend to factor in your car’s market value when calculating your premium.
- Knowing your car’s market value might save you the added shock of a lower-than-expected payout from a total loss claim or even help you dispute the payout with your insurer (if you’re in a sparring mood!).
- And finally – being aware of a car’s market value could help you decide whether to go with market value or agreed-value cover for your car insurance.
What factors can affect the market value of my car?
How old your car is
Most cars are considered depreciating assets and don’t exactly age like fine wine – the older they get, the less they’re likely to sell for on the open market.
Distance travelled
Your car’s odometer could be an indicator of how much life it has left. Generally, the more you drive a car, the more of its value you leave behind.
Make and model
Some cars have better build quality and reliability or are simply more popular. That’s why your car’s make and model matters when it comes to market value.
Condition and history
A car with no accident history, that’s been well looked after and serviced regularly, is more likely to fetch a better price on the market.
In-demand features
Cars with premium features that are popular among buyers might have a higher value. Think blind spot warning, rain-sensing wipers, leather seats, start-stop systems, and the like.
Modifications
Generally, the extent of modifications, quality of aftermarket parts used, and how well they’re installed can either increase or decrease a car’s market value.
How do I get a valuation for my car?
Using online tools
One of the more accessible ways of getting a car valuation is by going online if you want a quick estimate. And there’s no shortage of websites offering free (or paid) online car valuation tools.
How it works
It’s as easy as getting on the website and entering details about your car such as its rego and general condition, as well as some personal details.
It’s worth noting that this method often gives you more of a ballpark figure and might not consider the specifics of your car’s condition or safety features and mods that you’ve added.
In-person
If you’re looking for a detailed appraisal of your vehicle, you’re better off getting an appraisal done at a dealership or with an independent valuer.
How it works
An in-person car valuation might involve setting up an appointment and driving to the valuer’s place of business. It could also cost you a few more dollarydoos.
The upside, though, is that you’ll get a more accurate assessment of your vehicle. And this might be useful if you’re negotiating an agreed value with your insurer.
How to buy a market-value or agreed-value policy
For starters, you can use our comparison tool to compare policies from a range of providers.
Depending on the level of car insurance you’re after, you can get a policy with market-value cover as default, with the option to switch to agreed-value cover. While we can assist you with buying the policy you like, we’ll (unfortunately) have to love you and leave you to nut out the details of your agreed-value cover with your insurer. But until you get to that stage, we’d be happy to help you look at policies side by side and lock one in.
Get started on comparing car insurance policies!
Save time and effort by comparing a range of car insurance quotes with iSelect
iSelect General Pty Ltd (ABN 90 131 798 126. AFSL 334115) has partnered with Compare the Market (ABN 83 117 323 378. AFSL 422926) to compare a range of car insurers and policies. Not all providers in the market or all policies offered by the partners are compared and not all policies or special offers are available to all customers.
A number of our participating general insurance brands are arranged by Auto & General Services Pty Ltd ACN 003 617 909 on behalf of Auto & General Insurance Company Limited 111 586 353, both of which are related entities of iSelect Limited. Our relationship with those companies does not impact the integrity of our comparison service. Click here to view iSelect’s range of providers.
Any advice provided by iSelect is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice iSelect gives you, having regard to your personal situation, before acting on iSelect’s advice or purchasing any policy. You should consider iSelect’s Financial Services Guide which provides information about our services and your rights as a client of iSelect. iSelect receives commission for each policy sold that is a percentage of the premium or a flat fee. Ask us for more details before we provide you with any services.