Advice From Specialists
Written by Michael Foote, Insurance Expert
When insuring a supercar, one of the most important decisions you’ll make is whether to go with an agreed value or a market value policy. While it may seem like a technical distinction, the difference can mean tens of thousands of pounds if you ever need to make a claim.
Here’s how both approaches work, and how to decide which one suits your car, usage, and risk tolerance.
What is market value cover?
Market value policies are based on the vehicle’s estimated value at the time of loss. If your supercar is stolen or written off, the insurer will assess its current worth using pricing guides, trade data, and comparable listings.
This works fine for most mainstream vehicles. But with supercars, it can create a major problem.
Values fluctuate. A low-mileage Ferrari 458 or a well-specced Bentley Bentayga might be worth significantly more than what a trade book says. If the insurer disagrees with your view of the car’s value, you could find yourself thousands out of pocket.
What is agreed value cover?
With agreed value insurance, you and your insurer agree on a set value for the car at the beginning of the policy. This figure is locked in and documented in the policy schedule.
If the car is written off or stolen, that agreed figure is what you get. There’s no argument, no valuation dispute, and no surprises.
Agreed value policies often require:
- A professional or broker-signed valuation
- Photographs and condition reports
- Supporting documentation for upgrades or low mileage
- Regular updates to reflect market changes
They are typically used for:
- Supercars
- Collector vehicles
- Modified or customised models
- Vehicles with limited production runs
Which is better for your supercar?
If your vehicle is a high-spec model, has rare options, or is increasing in value, agreed value is usually the better choice. It’s particularly valuable if:
- You’re driving a Ferrari, McLaren, Aston Martin, or other prestige marque
- Your car is appreciating or stable in value
- You want to avoid negotiation during a claim
Market value may be suitable if:
- You’re driving a more common model that depreciates
- The vehicle is a short-term asset (e.g. a lease)
- You’re willing to accept some valuation risk in exchange for lower premiums
How it affects your premium
Agreed value cover is generally more expensive than market value. You’re asking the insurer to commit to a fixed payout, which increases their liability. But for many owners, that premium difference is worth the peace of mind.
Insurer disputes: a common pitfall
We’ve seen owners lose £15,000 or more on total loss payouts because the insurer valued their vehicle below what they paid. This often happens when:
- The car was privately purchased above trade value
- Optional extras weren’t included in the market comparison
- The vehicle’s condition wasn’t adequately documented
An agreed value policy protects you from these situations.
Don’t Leave the Value of Your Supercar to Chance
If you’ve invested in a supercar, don’t leave the value of your policy open to interpretation. An agreed value policy ensures that if something goes wrong, you’ll get what your car is truly worth – not what the insurer decides it’s worth on the day of the claim.
You can compare supercar insurance policies that support agreed value cover on our Supercar Insurance page. If you’re insuring a specific marque, start with something like our Bentley Bentayga Insurance page for tailored comparisons.