The term valuation refers to the calculation or determination of the value of an asset. In car insurance a valuation of the asset, being the insured car, is very important as the valuation amount plays an vital role in the calculation of the premium. When you insure valuable items such as jewellery or paintings you will obtain a valuation certificate from a qualified valuator who is a specialist in his area of expertise.

In car insurance valuation operates on a different basis. When you buy a new car the valuation will be equal to the book value of the car. The value of cars decreases at a rapid rate, some faster than others. There are also many factors that will influence the value of a car, things such as the kilometers on the clock, how well it’s been looked after, whether it has been in an accident or not and whether it has any rust damage.

In car insurance we also deal with different values such as market and retail. A reputable car dealer will be able to give you an accurate valuation of your car. There are also other sources available to obtain a car valuation for which a fee may be charged. An accurate valuation is important as you do not want to be either over or under insured.