Insurance Blog | State Insurance

Business Vehicles: Things You Should Know About Market Value

November 2019

So, your business 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 and any signwriting, wraps or artwork1. 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 sum insured to match what your vehicle is worth.

What about sum insured?

The sum insured is the specified limit listed on your insurance schedule. It’s important to understand that the sum insured doesn’t determine 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 sum insured shown in your State insurance schedule.

It is your responsibility to set the sum insured 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 sum insured is too high or too low, you should adjust it to reflect your vehicle’s actual market value.

Time to update your market value?

Business 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 sum insured for you.

Need a bit of help working out the market value of your vehicle? We’ve got your back. Here are some tools and resources that might help.

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.


1 The policy also provides cover up to $5,000 to cover the reasonable cost incurred for replicating any signwriting on a replacement vehicle.
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.

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