Why you should check your car insurance amount covered at renewal time

Car insurance often feels out of sight out of mind. However, it’s important to check your policy details at renewal time – especially your amount covered.

Learn more about your options below. 

Amount Covered vs Market Value

When you have an AAMI Comprehensive Car Insurance policy, you can choose to insure your car for an Amount Covered or Market Value.  Renewal time is the perfect time to consider whether the option you selected still meets your needs.

Amount covered is a set amount that is the maximum we’ll pay for loss or damage to your car, including the value of any accessories, modifications and GST. When you take out your policy, you can choose this amount from within a range. You can change it when you renew your cover or in specific circumstances. Some insurers call your amount covered an ‘agreed value’.

Market Value, however, is a variable amount based on our assessment of how much the market would pay for the car at the time of the incident. It includes many factors such as the car’s age, make, model, kilometres travelled and general condition, but not stamp duty, transfer fees, dealer warranty or delivery costs. To work out the market value, we may use recognised industry guides and publications that track the prices cars actually sell for.

It’s important to understand that the market value depends on the condition of the car and what it would sell for based on comparable sales. This may not be the highest ever sale price. See the PDS for more info, including any deductions that may apply. 

Learn more about Comprehensive Car Insurance 

Reasons why you should check your car insurance amount covered

You may notice that your car’s amount covered has changed at renewal. We know that your car’s value will change over time so when your policy comes up for renewal, we will adjust your amount covered to reflect this.

You know your car best, so it’s important that you consider whether this amount is one you’re comfortable with and that it accurately reflects the value of your car.

Remember that the amount covered includes the value of accessories and/or modifications. If you have added any of these to your car in the last 12 months, ensure you have factored this into the amount covered.

What happens if my car is written off?

With AAMI Comprehensive Car Insurance, if your car is less than two years old and you bought it new – we’ll replace it with a new car of the same make, model and series.

If we don’t come to an agreement about the new car, or if you’re not eligible for new for old replacement, we’ll pay you the amount covered or market value as listed on your certificate of insurance, less applicable deductions. 

Read your PDS for the full details.

Find out more about your Car Insurance amount covered 

Read more:

• What happens if your car is a total loss?
• What kind of car insurance do I need? 
• Car insurance myths debunked 

¹ Glass’s Information Services, 2021.

² Glass’s Information Services, 2021.

³ Glass’s Information Services, 2021.

 Insurance issued by AAI Limited ABN 48 005 297 807 trading as AAMI. Any advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it. Please read the relevant Product Disclosure Statement before you make any decision regarding this product. The Target Market Determination is also available. Call us on 13 22 44 for a copy.