Introduction
Many car owners in Malaysia are still confused about the term “Market Value” when using a car insurance calculator. In fact, this value is very important — it determines how much compensation you will receive if your car is severely damaged or stolen. This article explains what market value is, how it’s calculated, and how to check your car’s current value before buying or renewing insurance on BJAK.
What Does Market Value Mean?
Market value is the current value of your car in the market, not the price you paid when you bought it.
It changes depending on:
- Vehicle age
- Make and model
- Physical condition and mileage
- Current market demand
Example: If you bought a car for RM90,000 five years ago, the current market value may only be around RM50,000–RM60,000 depending on the model and condition.
How is Market Value Calculated?
Insurance companies usually refer to current market data (such as ISM Database or car valuation tools).
When you use BJAK Car Insurance Calculator, the system calculates automatically based on:
- Vehicle information (registration number, model, year)
- Annual depreciation rate
- Current data from Malaysian insurance databases
This ensures that the sum insured is realistic and aligned with current market prices.
Market Value vs Agreed Value
| Aspect | Market Value | Agreed Value |
| Definition | Current market value of the car | Value agreed with the insurer |
| Advantage | Lower premium | Fixed compensation (no depreciation) |
| Disadvantage | Compensation may be lower if market value drops | Higher premium |
| Suitable for | Older or regular cars | New or high-value cars |
Impact of Market Value on Compensation
If your car is stolen or declared total loss, compensation is paid based on the current market value at the time of the incident, not the purchase price of the policy.
Example:
- Current market value: RM55,000
- Insured value: RM60,000
- Maximum compensation remains around RM55,000 (market value at the time).
Hence, it’s important to check the actual value before renewing your policy.
How to Check Market Value on BJAK
BJAK makes it easy to check market value automatically:
- Enter your registration number and IC.
- The system displays the current vehicle value based on market data.
- You can then compare premium prices across more than 20 insurance companies.
Key benefits: fast, accurate, and verified via JPJ database.
Conclusion
Market value is not just a number — it determines how much compensation you can claim in case of an accident or theft. With BJAK you can view your vehicles current market value for car insurance purchase, and you no longer have to guess your car’s current value. Everything is calculated automatically and transparently.
Read More:
Benefits of Using a Car Insurance Calculator Before Renewing Your Policy
Learn to Calculate Roadtax for Imported (CBU) & Local (CKD) Cars
Guide to Using a Car Insurance Calculator to Get the Best Price
