Agreed Value Car Insurance

‘Agreed value’ refers to the retail price of your vehicle on the day that you purchase this policy. We use the Glass’s Guide to determine the market worth of your car, and your policy will cover the difference between that figure and the payout you receive from your motor insurer in the event of your vehicle being written off or stolen.

Get an Agreed Value Car Insurance quote

Agreed Value Insurance can provide priceless financial protection. If your car is declared a total loss, it covers the difference between the settlement from your motor insurance company and the retail price of your vehicle when you took out this policy.

As an example, let’s say you bought a new car for £20,000 and took out an Agreed Value Insurance policy at the same time. After a couple of years, your vehicle is written off in an accident. Let’s say that, by this point, its worth has depreciated to £15,000. Your motor insurance company provides a settlement in line with its market value at that stage, rather than the £20,000 you initially paid. That leaves you £5,000 out of pocket, but your Agreed Value Insurance covers that difference, so you don’t lose out.

Agreed Value Insurance isn’t a legal requirement like a standard motor policy. However, it could prove a sensible decision. Cars – especially new models – can depreciate quickly, and if something were to happen to your pride and joy then you could be left thousands of pounds out of pocket, even once you’ve received a settlement from your motor insurer. Our quotes start from just £109, so we think it’s a small price to pay for that peace of mind.

Get an Agreed Value Car Insurance quote

Only your insurer can declare the vehicle a total loss. Usually, this results from accidental damage, your fault or third-party fault, fire, theft or vandalism.

Total loss means that you have claimed under your motor insurance, your claim has been agreed, your vehicle has been forfeited (title of the vehicle transferred to the motor insurer) and a payment made following the incident.

Yes, even if you are to blame for the accident that causes your car to be written off, you will still be protected by your Agreed Value Insurance. Of course, as with any policy, there are exclusions that apply. These include driving under the influence of alcohol/non-prescription drugs or being involved in illegal activity. You can read the full terms and conditions in your policy wording.

Yes, you can take out Agreed Value Car Insurance for vehicles paid for on finance. However, if the outstanding finance balance exceeds the value that we have agreed upon, you will have to cover that difference from your own pocket.

You can take out Agreed Value Car Insurance on a used vehicle, but it may make more sense to purchase a policy for a newer model. These will come with a higher retail price and tend to depreciate more quickly, so you could be facing a greater shortfall if your car is written off or stolen.

Yes, Agreed Value Insurance can be purchased at any time, regardless of how long you have owned the vehicle.

There are some motor insurers that offer new-for-old cover in the first 12 months, which is why many drivers choose to defer their Gap Insurance policies for the first year. However, Agreed Value Insurance is designed to protect those drivers who fall outside of the usual 180-day qualifying period for our other gap policies, so deferring does not apply.

To get a quote for Agreed Value Car Insurance, you just need to follow three simple steps. All we need from you is your vehicle’s value, your desired cover limit and length of policy. Once we have those details, you’ll have your estimate in a matter of seconds.

Get an Agreed Value Car Insurance quote

You can pay through one upfront payment via credit or debit card without any charges. Or, we can arrange credit payments over 12 months. Please note those payments are collected by a third-party agency and a small administration fee applies.

The claim limit on an Agreed Value Insurance policy is the difference between the motor insurer’s settlement at the point of total loss and 100% of Glass's Guide retail value of the vehicle when you purchased the policy.

You need to select a suitable claim limit to ensure adequate cover for the term and price of your vehicle.

The main exclusions on this policy are:

The vehicle becoming a total loss whilst the driver is under the influence of non-prescription drugs; under the influence of alcohol; involved in illegal activity, fraud or an act of wilful negligence – for example leaving the keys in the ignition whilst the vehicle is unattended.

Please see your policy terms and conditions for a full listing.

Policy documents together with confirmation of payment are sent by email as soon as you make the payment.

The policy should always be in the name of the owner or registered keeper of the vehicle.

Yes, up to £1,000 in the event of a total loss claim.

Yes, anyone included on your comprehensive policy as a named driver will be covered by your Agreed Value Car Insurance.

You are insured in member countries of the European Community. You are also covered in any nations where an International Motor Insurance Certificate (Green Card) is effective on your vehicle at the point of total loss up to 120 days in any one trip.

No, we do not provide a courtesy car as part of your Agreed Value Insurance. Your standard motor policy may include this as a benefit, but please check the terms and conditions to be sure.

Yes, you can cancel your Agreed Value Car Insurance completely free of charge within 30 days of the policy’s start date. This is more than twice the legal requirement of 14 days. If you choose to cancel once that grace period ends, you’ll be charged a fee of £35 and given a refund on a pro-rata basis.