Covering your rural vehicle helps you continue operations despite any bumps in the road. Often claims can be minor accidents or small dings but, what if your vehicle is written off or stolen? If your rural motor vehicle is covered with AMI, you’ll likely be covered for the market value of your rural vehicle, so it’s important to keep your sum insured up to date.
The market value of your vehicle is the reasonable sale price of the same or comparable vehicle immediately before it was damaged or stolen. The market value excludes GST and any signwriting, wraps or artwork. 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 you update your sum insured to match what it’s worth. That way, your premium will accurately reflect the value of your vehicle.
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 AMI policy 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.
Rural 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.
We’ve put together some resources to help you calculate the market value of your vehicle:
Once you know what your vehicle is worth, give us a call on 0800 100 200 and we’ll update your sum insured for you.
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.
