What does the purchase value of a car mean?

What is purchase value of a car?

The purchase value or acquisition value of a car is what the car cost at the time of purchase. Simply put, if you buy a car for €15,000, the purchase value of the car is therefore €15,000. In the event of a claim, an insurance company may ask you to prove the purchase value. You can do this with the purchase receipt or a bank statement.

What is a newvalue of a car?

The new-value of a car is what the car costs to buy again now. Although the two terms seem to mean the same thing, new value is not the same as purchase value. The purchase value is what the car cost when it was purchased. The new-value is what that car costs now. Suppose you bought your car 2 years ago. You paid €7,500 for it at the time. Now, two years later, the same car costs only €5,000. So the purchase value is €7,500 and the new value is €5,000.

What is my daily value of the car?

The daily value of a car is the amount the car is worth at the time the value is determined. Thus, the daily value is the current value of your car. Immediately after buying a new car, you are already depreciating the value of the car. For example, the car is worth €25,000. Once the car is in your name, the car is second-hand. The value may already have dropped to €22,500. The daily value of a car plays an important role in case of damage. Car damage is repaired, unless the repair costs exceed the current market value of the car. In that case, you will be paid the current market value of the car. The car is then totaled. You therefore benefit from a high current market value.

Car total loss: why don't I get the purchase value back?

Car damage is always annoying, of course, but in the worst case your car is totaled. A car is declared total loss if the damage is beyond repair or if the repair is more expensive than the current market value of the car. Good to know is that you will never get back the purchase value in case of car damage. This is due to the indemnity principle. This means that an insured person may not make a financial gain in the event of damage.

You can always insure a car with the new value policy, for new cars, or the purchase value policy, for used cars. With the purchase value policy, you will not receive the new-for-old value, but the purchase value of the car if it is totaled within the maximum validity period.

How do I break the purchase value of a car?

In the event of a claim, an insurance company may ask you to prove the purchase value of your car. You can do this with the purchase receipt or a bank statement. So you do not have to calculate the purchase value, as with the catalog value. Do you want to use the purchase value scheme? Then you will also have to prove the purchase value with a bill of sale or a bank statement.

Do you have any questions or the value of your car or car insurance? Then be sure to contact us! You can also take a look among the frequently asked questions about car insurance. Who knows, maybe your question is already there.