Car Insurance

The retail value is the highest of the 3. Simply put, it’s the average price for which a dealer would sell a car, taking into account its age, condition and mileage. To determine your car’s retail value at the time of the loss, most insurers refer to the Auto Dealers Guide.

The trade value is what a car dealer would pay you for your car, should you trade it in for another.

And the market value is what you’d be able to sell your car for, should you sell it privately. A fair market value is usually based on the difference between the retail value and the trade value.

‘Private use’ is for private or social purposes, including driving between your home and regular place of work. (And shopping on the weekend, visits to your parents and friends.)

‘Business use’ includes private use with additional cover, for instance if your car forms an essential part of any work or function. (It basically means that without your car you can’t really make a living.)

Then there’s also ‘occasional business use’. This includes private use with additional cover for the limited use of your car for business purposes such as buying stock once a month or weekly deliveries. If you make more than 7 business trips a month, you should rather insure your car for full business use.

Insurers need to see if there is any existing damage to the vehicle, confirm if the anti-theft device meets their requirements and obtain the details of any vehicle accessories and sound equipment.

An excess amount is part of your responsibility and refers to the first portion that’s payable in the event of a claim. In some instances there’s also an additional excess amount payable by you, that will be stated on your policy schedule.

An approved immobiliser is self-activating so you cannot forget to activate it unlike a gearlock.