Car Insurance Companies Always Ask For An Estimated Market Value, Why Is This?

This is because car insurance companies normally only pay out on the current market value of a vehicle in the event of a claim. The estimated market value is therefore not what you paid for it six months or a year ago. Low second hand car values and depreciation notwithstanding, what you paid and what you get as a claim settlement may be quite far apart.

The exception to this rule is for vehicles where an agreed value has been fixed at the start of the policy term. Generally, agreed values will only be negotiated for classic cars, historic or specialist vehicles.

If you're not sure about the current market value of your vehicle, check the classifieds and garage sales adverts in your local newspaper or buy a copy of the many car valuation guides now on sale in newsagents. However, it will be just as quick doing a search online or visiting a site like jamjar.com to find comparison prices.