‘Agreed’ value and ‘Market’ value
Some insurance companies allow you to choose the insured value of your vehicle. When the ‘sum insured' is set in this way it is called ‘agreed value' and is locked in for the period of insurance (usually 1 year). If this option is not chosen (or available), the sum insured for your vehicle will not be fixed. It will be insured up to its ‘market value' which will be determined at the time of any claim using current market rates based on its age and condition.