Farm Vehicles: Things you should know about market value
So, your farm vehicle cover is sorted. Phew. But what if your vehicle was to get damaged beyond repair? Or even stolen? It’s a good thing you’re covered for what your vehicle was worth when you first took out your policy, right? Well, not quite. It all depends on what kind of cover you have.
What is market value?
The market value of your vehicle is the reasonable sale price of the same or a comparable vehicle immediately before the loss, excluding GST. If you’re insured for market value it means you’re insured for what the vehicle is worth. So, as the value of your vehicle changes over time, it’s important that you update your Limit to match what your vehicle is worth.
What is the Limit?
The Limit is the specified amount shown on your insurance schedule and inventory. It’s important to understand that your Limit may not be the amount you’ll be paid if your vehicle is stolen or damaged beyond repair. The most you’ll be paid is your vehicle’s market value immediately before the loss, up to a maximum of the Limit shown in your State insurance documentation.
It is your responsibility to set the Limit for your policy based on your vehicle’s actual market value when you first arrange your insurance and to keep it up to date each year after. This will help avoid overstating the value of your vehicle or underinsuring it.
If you think your Limit is too high or too low, you should adjust it to reflect your vehicle’s actual market value.
Time to update your market value?
Farm vehicle values change over time depending on the vehicle’s age, make, model and market conditions, as well as many things that are specific to your vehicle such as mileage, maintenance and modifications. That’s why we are unable to automatically adjust your vehicle’s Limit for you.
Need a bit of help working out the market value of your farm vehicle? We’ve got your back. Here are some tools and resources that might help.
- Ask a Registered Motor Vehicle Trader (RMVT). Unsure if they're registered? Visit motortraders.govt.nz to check the traders in your area
- Visit driven.co.nz for a free calculator for light vehicles
- Check out trademe.co.nz for a good guide to vehicle sales prices
- Contact a professional valuer like:
Once you know what your vehicle is worth, give us a call on 0800 80 24 24 and we’ll update your sum insured for you.
Disclaimer: This information is only intended as a guide. Policy limits and exclusions apply. This does not apply to any vehicles that are insured for Agreed Value or Third Party only cover. If you have Third Party, Fire and Theft cover then the market value, up to the sum insured, is the most we will pay if the vehicle is stolen or damaged beyond repair by fire. Please refer to the policy wording for full terms and conditions.