Introduction
Choosing car insurance isn’t just about comparing prices. While Agreed Value Slightly More Expensive, it guarantees the agreed value of your car in the event of a total loss. The slightly higher premium is worth it because it protects drivers from losing thousands compared to market value, which can depreciate quickly. This article explains why Agreed Value Slightly is worth it and when to choose it.
1. What is Agreed Value
Agreed Value sets your car’s value upfront when you purchase the policy, even with a higher premium. The insurer pays the agreed amount in full if the car is declared a total loss, without deducting depreciation.
Advantages:
- Protects the car’s actual value
- Avoids additional costs after a total loss
- Ideal for new or premium cars
Difference:
- Market Value: Payment based on current market price, minus depreciation
- Agreed Value Slightly More Expensive: Payment based on agreed value when policy was purchased
Agreed Value charges a slightly higher premium but guarantees full payout if your car suffers major damage or a total loss.
3. When Choosing Agreed Is Worth It?
You should opt for Agreed Value if:
- The car is new or 1–5 years old
- The car has a high value and depreciates quickly
- You want to protect your investment from major loss
For older or low-value cars, market value coverage may suffice.
4. Tips for Choosing Agreed Value Slightly More Expensive
- Check your car’s value when buying the policy
- Choose coverage according to the car’s age and type
- Compare premiums and benefits between Agreed Value and market value
- Consult BJAK or your insurer for guidance
Conclusion
Choose Agreed Value, even if Agreed Value Slightly More Expensive, to save thousands if your car is declared a total loss. Understanding the difference with market value helps Malaysian drivers make smart policy decisions. Pick Agreed Value to protect your car investment and prevent long-term losses. Understanding the difference with market value helps Malaysian drivers make smart choices when selecting a policy. Choose Agreed Value to protect your car investment and avoid long-term losses.
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