Should I insure my car for retail, trade-in or market value?

Ensure you're covered with Santam

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Many South Africans don’t understand that you can insure your car for different values but in order to understand how your premium will be calculated, it is important to understand the difference between retail, trade or market value.


What is the retail value of your car?


The retail value is what your car would sell for if you were to buy it from a dealership. The retail price is usually also the closest value to the replacement cost of the car.


What is the trade-in value of your car?


The trade or book value of a motor vehicle represents the average price that a dealership would pay for your car.


What is the market value of your car?


The market value of a car is almost always lower than the retail value and takes into account a number of variables, including mileage, vehicle condition, service history and accident reports. If you were to sell your car privately, the market value would be the price that you could likely sell it for.


What should you insure your car for?


There is no right answer here. Generally, Santam recommends that clients insure their cars for its replacement value in the event that it is stolen and or completely written off in an accident. In most cases, this would amount to the retail value. 


Santam now offers a guaranteed value insurance that guarantees the amount paid out if your vehicle is written off or stolen (Ts and Cs apply).


Insure your car with Santam


Santam is South Africa’s largest short-term insurer, insuring risks of over R4 trillion. We also offer the following cover and benefits:


  • Comprehensive car insurance now comes with a guarantee
  • Third-party liability insurance
  • Free SOS services to our personal lines policyholders


Call us on 0860 444 444 or speak to your intermediary about the right insurance cover for your car today.