What does the purchase value rule mean?

When you buy a used car, it is wise to look at what is known as the purchase value policy when taking out car insurance. With the purchase value scheme, the insurer will refund you the purchase price if your car is declared totaled. There are a number of conditions for making use of this purchase value settlement.

The first condition for using the purchase value scheme is that the used car must have limited hull or all-risk insurance. The purchase value arrangement always has a maximum validity. However, this varies by insurer. Often it is one, two or three years. This means that a one-year purchase value settlement expires after that year. In addition, you must be able to show the receipt and you must have bought the car from an authorized garage.

The difference between the purchase value and the new value

For new cars, many car insurance companies have a new-value scheme. This scheme makes it possible to buy a new car again when you total your car. For used cars, this scheme does not apply. When buying a used car, you can opt for the purchase value scheme. This will not give you the new-for-old value, but the purchase value of the car should you total it within the maximum validity period.

Terms and conditions of car insurance companies including car purchase value

The purchase value scheme is being included by more and more insurers in their policy conditions. Per insurer, the scheme can differ a lot. Below we list for you the most important conditions that differ with most insurers:

• Validity of purchase value regulation
• Maximum purchase value
• Age of the car
• Purchase site

Below is a brief explanation of each condition based on the above conditions.

Validity of purchase value regulation

As mentioned earlier, the purchase value scheme always has a maximum validity. This is the maximum period during which you can use this scheme. This is often a maximum validity of one, two or three years. After that time, the purchase value scheme expires.

Maximum purchase value

An insurer may have a maximum purchase value for the car. One insurer will have no maximum amount and another may have a maximum amount of, say, €35,000. This means that the amount you pay for the car cannot be higher. Should the amount be higher than the maximum purchase price set by the insurer, you cannot use the purchase value scheme with that insurer.

Age of the car

The maximum age of the car may also differ between insurers. It may be that one insurer states that the car cannot be older than 5 years, while another insurer has no maximum age.

Purchase site

In some cases, you can use the purchase value arrangement only if you bought the car from a branded dealer or from a BOVAG approved company.

Comparing insurers on purchase value insurance

You can easily compare different car insurance companies atalpina.nl . When comparing car insurers, please pay attention to the above conditions under the purchase value policy. Do you have a question? Take a look at our frequently asked questions. Here you will find the most frequently asked questions per product.

Are you unable to figure it out? Then contact us. We will be happy to help you. You can reach us Monday to Friday from 08:00 to 18:00 on telephone number 088-6883700.