When it comes to a car evaluation, most dealerships will consider a number of factors before settling on the figure they think your car is worth. Often, these factors are calculated on fancy gadgets which will calculate the general condition of the car, the year of the car, the model, the style as well as its mileage.
Once these factors have been established, you may wonder what you should insure your car for. Santam’s underwriting team says there is no right answer here. “Generally, we recommend that our clients insure their cars for its reasonable market value in the event that it is stolen or completely written off in an accident. In most cases, the car’s amount would be equal to its reasonable market value,” says Santam’s personal lines underwriting manager, Marius Neethling. Click here for a look at the difference between retail, trade-in and market values.
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