Within the complex world of insurance, in many cases, we find specific terms that people who are not professionals struggle to understand. You need to know these technicalities to get everything clear when you purchase a policy and choose the one that suits us.
This time talk of market value. According to Wikipedia the market value mean by: " the monetary amount to get the owner of a well-used item, if at one point decided to sell. This amount is always subject to the age of the property, its condition of wear or conservation and the law of supply and demand. "
Given this, when we refer to the market value of a vehicle within an insurance policy we mean the sale price of the car damaged. Obviously, the value of a newly purchased car damaged is not the same as a car with more than ten years old, then the compensation received will be very different. This directly affects the type of insurance should I hire because when deciding whether to hire a blanket insurance policy for a vehicle is very important to compare the cost of insurance to the market value of the car .
When interested stop hiring car insurance all risk?
After this explanation, we can conclude that from a certain point in the life of the vehicle is more advisable to take out a policy to a third party to all risks. Given that the maximum compensation for a part of own damage decreases exponentially with time because it is linked to the market value of the vehicle, once the car has six or more years longer interested in hiring an insurance all risks.
For these reasons, according to ICEA , from the sixth year, you will usually be more cost effective to buy a policy to a third party, perhaps with some extended coverage as fire, theft, or moons. On the other hand, if we have accumulated bonuses from previous years and the cost of comprehensive insurance is similar to the basic insurance would be logical to follow with full insurance
