Know The Facts: How Cars Are Valued For Insurance | MiWay

Retail is typically the highest insured value option. It’s based on what a dealer would likely sell the vehicle for (taking age, condition and mileage into account).

What it means for you:

• Higher premium
• Higher potential settlement for total loss (depending on policy terms and excess)

In South Africa, “market value” in insurance is commonly treated as the average between retail and trade values — not necessarily what you personally think you could sell it for.

What it means for you:

• Mid-range premium
• Mid-range settlement outcome in a total loss scenario

Trade is usually the lowest insured value option and aligns with what a dealer might pay to buy your vehicle (before they add margin and sell it on).

What it means for you:

• Lower premium
• Lower settlement if your car is stolen or written off

Even with the same make and model, values can shift based on things like:

• mileage,
• condition,
• service history,
• supply and demand in the local market.

And importantly: insurers often rely on established valuation sources and guides used in SA.

If your car is written off or stolen

This is where your insured value choice matters most. Your settlement is typically linked to the insured value on your cover/schedule, minus any applicable excess, and aligned to policy terms.

Why “I insured it for X” doesn’t always feel like “I got paid X”

Real-world settlements can vary because:

• the loss happens at a specific point in time (values change),
• depreciation can apply,
• the claim outcome depends on whether the car is repairable or a total loss,
• excess and other policy conditions apply.

• Your car is financed: consider whether a lower insured value could leave a gap between settlement and what you still owe (a shortfall risk). Competitors increasingly address this directly because it’s a common pain point.
• You want the closest-to-replacement outcome: retail value is usually the direction people choose.
• You’re trying to keep premiums down: trade value can lower premiums, but it also lowers your potential total-loss payout.
• Your car is rare, vintage, unlisted, or customised: special agreed value may apply (with an approved valuation).

Not always. In insurance, “market value” is often calculated as the average between retail and trade values.

Retail value is typically the highest insured value option, so it generally results in the highest settlement for a valid total loss claim (subject to policy terms and excess).

Because you’re insuring the car for a higher amount — which increases the insurer’s potential payout exposure.

It’s closer to what a dealer might pay you for your car (not what they sell it for).

For unlisted, vintage, or collectable vehicles where an approved valuation is used to set the insured value.

Check your schedule/cover sheet — or ask your insurer to confirm it in writing so you’re never guessing at claims stage.