Selecting the right insurance cover for your motorcycle can be confusing. At Swann Insurance, we offer the option of Agreed and Market Value on our Comprehensive cover giving you flexible options to choose from at new business and renewal.
The cover you select for your motorcycle is important when you purchase insurance. Whether you select to cover your bike for an Agreed value or Market value, it will play a role in determining the premium. Swann Insurance will also consider the type of bike you have, whether it’s a Cruiser, Touring, Sport, Scooter or Enduro.
What’s the difference?
Agreed Value is a fixed amount we agree to cover your motorcycle for during the current period of insurance. This fixed amount is equal to the value of your motorcycle including all modifications and accessories chosen at the commencement of each insurance period. The Sum Insured will remain the same for the duration of the motorcycle insurance period.
Market Value is the pre-accident retail value of your motorcycle. If you insure your motorcycle for Market Value and your motorcycle has accessories, the most we will accept for accessories is 20% of the market value of your motorcycle. The value for your motorbike is assessed at the time of loss, based on today’s market value while also taking into consideration the age, condition and the kilometres travelled.
How do I choose the right cover?
It can be difficult deciding which value to select for your motorcycle insurance, so we’ve developed a few common reasons people choose either value.
Often those that choose the Agreed value are ones that have added modifications and accessories to their motorcycle or the bike is in better than average condition such as low kilometres travelled. A motorbike kept in top condition will face less depreciation.
If you have taken out finance against your motorcycle, your financier may ask you to insure your motorcycle for Agreed value.
Many riders will decide to take out Market value for their motorcycle insurance when they are comfortable with the current market value at the time they commence or renew their policy. Market Value is also favorable for new motorcycle owners with a 24 month ‘new motorcycle replacement’ benefit under comprehensive cover. Market value is the only option for those who insure their motorcycle for Third Party Only or Third Party Fire and Theft.
Whether you decide to go with the Agreed Value or Market Value for your motorcycle insurance, there are always risks or concerns to consider.
Making a Decision
Swann Insurance is not able to advise you what cover you should take out for your motorcycle insurance. We can provide factual information on how payouts are calculated so you are able to make an informed decision. A key consideration riders must take into account is the value of modification and accessories added to their bikes. Specifically, how much this increases its value. It is very important to understand the difference between Agreed Value and Market Value as it affects both your premium and payout amount.
Your Agreed value should be reviewed prior to each renewal of insurance cover, especially when additional modifications and accessories have been added. You should always review your agreed value sum insured as it will depreciate upon each renewal.