When we start to contract car insurance we already know that the basic thing is to know the types of insurance and that almost always, any claim will take time. But beyond the basics and following this line of content on insurance, this time we are going to talk about the different values of your car for insurers.
I hope that the moment of the conversation has not arrived or will not come to you where the insurer talks to you about venal value, improved venal value, market value (or replacement) and value again. Four types of values by which the company will value our car in the event of an accident. Let’s get down to business and leave them explained.
The market value is used to determine the compensation that the insured will receive in the event that their vehicle suffers irreparable damage or stolen. Instead of being based on replacement value (the cost of replacing the vehicle with a similar new one), market value takes into account depreciation and wear and tear on the car. In other words, it is what your car would be worth on the second-hand market.
The exact formula for calculating market value may vary between insurers, but generally involves the market value assessment of the vehicle based on its model, make, year of manufacture and mileage at the time of the accident. How well we have taken care of it up to the moment of the accident will also be a determining factor.
How is it calculated?
To calculate it, amounts established by the Ministry of Finance are used, which are updated periodically. Order HAC/1375/2018, updated in December 2018, is in force since January 1, 2019 and provides values according to the make and model of vehicle, including boats.
Furthermore, there are calculators sales value that allow you to quickly obtain the corresponding value by entering information such as vehicle type, accident, registration date, make, model and version. These values are percentages of the official value published by the Treasury and vary depending on the age of the car.
On the other hand, if the car is a Cab, VTC, Driving schools either rentals for more than 6 years the amount will have to be deducted by 70% before applying the following calculations:
- Up to one year: 100%
- 1-2 years: 84%
- 2-3 years: 67%
- 3-4 years: 56%
- 4-5 years: 47%
- 5-6 years: 39%
- 6-7 years: 34%
- 7-8 years: 28%
- 8-9 years: 24%
- 9-10 years: 19%
- 10-11 years: 17%
- 11-12 years: 13%
- More than 12 years: 10%
Improved venal value
The term “enhanced market value” is not a commonly used concept in the field of car insurance or market value regulations. However, it could refer to certain aspects or improvements that may affect the venal value of a particular vehicle.
If you refer to specific improvements or modifications in a car that can influence its market value, it is important to keep in mind that, in general, insurers can consider these improvements when evaluating the value of the vehicle in the event of a total loss or accident. Improvements may include facilities such as soundimprovements in the performance the motor, accessories personalized, among others.
Sometimes insurers will choose to improve sales value of the car and this will fluctuate, as an improved sales value, between the sales value and the replacement value. For this there is no clear formula since it will depend entirely on the car and sales market references such as Ganvam or Eurotax.
Market value and new value
He market or replacement value It is easier to understand since it is the value of the car at the same time the accident occurs. If you have an accident with an ABARTH 500e Cabrio of €42,000, the company will use the market value of the undamaged ABARTH 500e Cabrio of €42,000 on the market.
In this case the company will not take into account the mileage as in the market value but will take into account all the accessories that are included in the policy. If it happens that your insurance policy establishes the market value, this will be taken into account, ignoring the market value. Finally, the new value is the price of the car when it leaves the dealership. No more no less. Of course, including transportation, taxes, registration, bonuses, etc.
With this information, as always, we recommend that you review your insurance policy and check the value of your car.