Agreed Value vs Market Value: Which Is Right for Your Motorhome?

The Core Difference

The main difference between agreed and market value insurance comes down to certainty. With agreed value, you know exactly what you'll receive if your motorhome is written off. With market value, the payout is determined at the time of loss.

What Is Agreed Value?

Agreed value means you and your insurer agree on your motorhome's value when you take out the policy. This value is documented in your policy. If your motorhome is written off, stolen, or damaged beyond repair, you receive the full agreed amount. There's no depreciation argument, no "what it's worth now" negotiation. You get what you agreed to pay for.

What Is Market Value?

Market value insurance means the insurer pays what your motorhome is worth at the time of loss. When you make a claim, they assess the current market value and pay that amount. This means if your motorhome has depreciated since you bought it, you'll receive less than your purchase price.

Advantages of Agreed Value

You know exactly what you'll receive in a total loss claim — no surprises. You avoid depreciation arguments with the insurer. Motorhome values can be difficult to assess, and agreed value removes this uncertainty. You can ensure the payout covers replacing your motorhome.

Advantages of Market Value

Premiums are typically lower than agreed value. It reflects the motorhome's actual value, which may be fairer if values have dropped significantly. For newer motorhomes that depreciate quickly, the savings can be substantial.

Which Should You Choose?

Choose agreed value if your motorhome is valuable, recently purchased, or difficult to replace at current market value. Choose market value if you're looking to minimize premiums and understand you may receive less than purchase price in a claim. Consider a hybrid approach: agreed value for older motorhomes with established values.

Making Your Decision

Get professional valuations for your motorhome. Research comparable prices in the current market. Consider your replacement plans if your motorhome was written off. Compare premium differences between agreed and market value. Make your decision based on peace of mind and financial security.