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What Value Should You Insure Your Car For – Trade, Retail or Market Value

What Value Should You Insure Your Car For – Trade, Retail or Market Value
You Have Many Options When It Comes to Insuring Your Car. You Can Insure It According to Its Trade, Retail or Market Value. Decide Now With These Tips.

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Retail Market or Trade-in-Value? Here’s What You Need to Know


Did you buy that luxurious new model Kia Forte and are now looking to get it insured?

Have you ever tired insuring a vehicle before?

Well, if you have, you probably know that car insurance companies are very particular about the car’s retail, market and trade-in value.

If you have no clue about what these are, here’s a detailed guide on insuring your car retail market or trade-in value1.

Trade, Retail or Market Value – What Price Should You Insure Your Car For?

When your car is totalled in an accident, your auto insurance firm compensates you for the market value of the totalled car – or more precisely, they pay for what it claims the value of your vehicle is.

Therefore, it’s essential to figure out the difference between the trade-in value, car retail market value2 and the overall market value of your car.

Hand Shake

The difference between these insured values might not seem like a noteworthy issue to consider when you’re taking out a car insurance policy.

Still, it can make a significant difference to your claim when your vehicle is stolen or written off3.

With that, here is a defined guide to these values to help you make an informed decision when taking out your auto insurance policy5.

Car Retail Value Insurance

If you purchased a car from a dealership, you’d pay the vehicle’s retail value.

If your car is involved in an accident and it’s written off, or it’s stolen during a hi-jacking, you’d probably be able to replace it with a similar make/model if you insured it for its retail value.

You can use the retail value calculator to figure out how much or an estimate of you’ll get from your insurance claim4.

Car Interior

Trade-In Value/ Trade Value Insurance

It’s the price that a dealer would typically offer you for your older vehicle if you want to purchase another car from them.

The dealer will offset the cost of the new automobile against this proposed trade-in value – it’s the lowest amount you can insure your vehicle for since it’ll be lower than the retail value.

Thus, you won’t be able to replace your car for its current value if it’s stolen or written off.

Sideview Mirror

Market Value Insurance

It’s the average of the retail and trade-in value.

It takes into account various variables like mileage of your vehicle, your service and accident history, and the general condition of your sports car or van.

If you sold your automobile privately rather than through a dealership, then you’d probably get a price that’s close to its market value.

Tip: all the insured values might be adjusted up or down based on your vehicle’s conditions and mileage.

Common Questions

Is Market Value the Same As Retail Value?

How Do Insurance Companies Determine Fair Market Value?

How Can One Find the Retail Value of Their Car?

What Does Cars Retail Value Mean?

So, that said, what’s the best insured value for your car?

Well, it all depends on your needs.

When you’re making your decision, make sure that you factor in the amount you still owe on the vehicle, if you want to get the same car make and model, and the costs of your monthly car insurance premiums.

You also have to remember that the higher the insured value, the higher your auto insurance premiums6 will be.

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Editorial Note: This content has been independently collected by the CarInsuranceCheck advisor team and is offered on a non-advised basis. CarInsuranceCheck may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.

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John Duckett

Written by
John Duckett
Founder, CarInsuranceCheck

John helps individuals get the best deal on car insurance. He advises on how to match client needs with budget and successfully negotiates with insurance houses to exceed client expectations.

Working in the online space is his passion, he loves to share his knowledge on insurance and keeps an updated blog.

Insuring Your Car Retail Market

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