Agreed Value vs Market Value — NZ Motor Insurers

Which NZ insurers offer agreed-value cover, which default to market value, and what each means at total loss.

Last refreshed 2026-05-20

What this topic covers

Agreed value: the insurer agrees a payout amount upfront, regardless of market value at claim time. Market value: payout is based on the vehicle's value at total loss. Agreed value typically costs more in premium but removes total-loss uncertainty.

How each NZ motor insurer handles agreed vs market value

47 of 48 cells populated from ingested policy wordings. Cells marked Not on file mean the wording PDF didn't address that specific fact, or extraction couldn't isolate it with confidence. Authoritative answer is always the source PDF (linked from each provider profile).

Provider	Agreed value available	Market value default	Total-loss payout basis	Sum-insured-increases
AA Insurance 3 tier wordings · 2025-04-28	Comp yes TPFT yes TP no	Comp yes — market value applies for 'Replacement vehicle cover' and 'Additional vehicle cover' (capped at $100,000) TPFT no TP yes	Comp paying the agreed value of your vehicle; or replacing your vehicle under 'New vehicle cover'; or paying the market value or $100,000 (whichever is lowest) under 'Additional vehicle cover'; or paying the market value under 'Replacement vehicle cover' TPFT For fire or theft claims the most we will pay is the agreed value of your vehicle. Third Party, Fire & Theft does not pay out for own vehicle damage from accidents (other than glass/locks/ignition from attempted theft or vandalism, and up to $4,000 for accidents with an uninsured third party). TP Third Party tier does not pay out for own vehicle damage except under the standard benefit 'Accidents with an uninsured third party', under which the most paid is the market value of your vehicle up to $4,000.	no — not mentioned
AMI Insurance 1 wording · 2024-11-01 · +1 variant	yes	yes	pay you your sum insured if you have an agreed value policy; pay you the market value, or your sum insured if that is less, if you have a market value policy; replace your vehicle with a new vehicle of the same model and specification, including on-road costs, if you have Comprehensive, the loss happened within 12 months of you purchasing your vehicle new, and the specific model is available in New Zealand.	On renewal, we may change your vehicle sum insured to account for general factors that affect vehicle value changes from our external provider.
Cove Insurance 1 wording · 2021-01-01	yes	no	If your car cannot be repaired because it is uneconomic or unsafe to repair or it has been stolen and not recovered, and we pay you the agreed value as settlement in your claim with us.	Not stated in extracted wording
FMG 1 wording · 2024-07-01 · +1 variant	yes — 'the amount shown on the certificate' is one of the settlement options	yes — 'present-day value' (defined as market value immediately before the loss, or replacement cost less an allowance for age and wear and tear) is a settlement option	If your private vehicle is a total loss, we may settle your claim by paying either: the present-day value of your private vehicle, or the amount shown on the certificate.	No explicit annual indexation rule stated in this wording
Initio 1 wording · 2021-05-01	yes	yes	If we consider the car is a total loss, we will at our option: 1. pay you the sum insured if the schedule shows you have an agreed value policy, or 2. pay you the lesser of the market value or the sum insured if the schedule shows you have a market value policy, or 3. replace the car with a new vehicle of the same model and specification, provided: (a) the schedule shows 'Type of cover: Full cover', and (b) the loss occurred within 12 months of you purchasing the car new, and (c) the model and specification is available in New Zealand.	Not on file
NZI 1 wording · 2026-04-01 · +1 variant	yes	For Third Party Only cover under the 'Uninsured motorist damage' benefit, your vehicle is covered for its market value. For Comprehensive and Third Party Fire and Theft, the sum insured is paid as agreed value on total loss.	If we decide your vehicle is a total loss, at our option we do one of the following: pay you your sum insured as an agreed value; replace your vehicle with a new vehicle of the same model and specification, including on-road costs, if all the following apply: you have Comprehensive cover, the loss happened within 18 months after you purchased your vehicle new, the specific model is available in New Zealand.	On renewal, we may change your vehicle sum insured to account for general factors that affect vehicle value changes from our external provider. In our offer of renewal, we show you the sum insured that will apply during the next period of insurance. You are responsible for checking that your sum insured is enough to cover loss to your vehicle, including its accessories and modifications.
Protecta Insurance 1 wording · 2024-12-01	No — policy references Sum Insured or market value, whichever is lesser; no agreed value option is mentioned	yes	We choose whether to repair the damage or to pay You the cost of repairing the damage, limited in both cases to the Sum Insured shown in the current Certificate of Insurance or the market value whichever is the lesser.	Not stated in this wording
Star Insure 1 wording · 2022-07-01	yes — schedule may show vehicle insured for agreed value; in total loss, the most paid is the lesser of the vehicle's market value plus 20%, or the sum insured	yes — default total loss settlement is based on market value up to but not exceeding the sum insured for most cover tiers	If we consider your vehicle to be a total loss, we will pay you the vehicle's market value up to but not exceeding the sum insured, however: (a) if the schedule shows your vehicle is insured for agreed value the most we will pay is the lesser of: (i) the vehicle's market value plus 20%; or (ii) the sum insured; or (b) if the schedule shows your vehicle is insured for certified value, pay you the amount stated in the schedule as the certified value, provided that, unless we agree otherwise, the valuation must be no older than 12 months as at the commencement of the period of insurance, failing which settlement will be on the basis of agreed value; or (c) if the schedule shows your vehicle is insured for fixed value, pay you the amount stated in the schedule as the fixed value; or (d) if applicable and shown in the schedule, replace the vehicle pursuant to Policy Extension 'New Replacement Vehicle' (PE23); or (e) if applicable and shown in the schedule, pay your claim in accordance with Policy Extension 'Second Hand Purchase Price Guarantee' (PE32); or (f) if the vehicle is leased, pay you or the vehicle's lessor the vehicle's market value up to but not exceeding the sum insured; or (g) if the schedule shows your vehicle is insured for construction value, pay you the amount you paid for the vehicle together with the amounts you have spent restoring the vehicle as at the date of any loss giving rise to a claim covered by this policy, but not exceeding the sum insured. Star Enthusiast: total loss based on agreed value (or as otherwise specified in the schedule).	It is your responsibility to ensure that the sum insured under this policy is adequate to cover the cost of repair or replacement of your vehicle or is otherwise satisfactory for your requirements including taking into account any modifications, depreciation and other such matters which may affect the value of your vehicle.
State Insurance 1 wording · 2024-11-01	yes	yes	pay you your sum insured if you have an agreed value policy; pay you the market value, or your sum insured if that is less, if you have a market value policy; replace your vehicle with a new vehicle of the same model and specification, including on-road costs, if you have Comprehensive, the loss happened within 12 months of you purchasing your vehicle new, and the specific model is available in New Zealand	On renewal, we may change your vehicle sum insured to account for general factors that affect vehicle value changes from our external provider.
Tower Insurance 3 tier wordings · 2024-09-01	Comp yes TPFT no TP no	Comp yes TPFT yes TP yes	Comp If we decide your car is a total loss: we'll pay you the agreed value for your car, if that is the cover type shown on your certificate of insurance; we'll pay you the market value for your car at the time of the loss, if that is the cover type shown on your certificate of insurance TPFT We'll pay you the market value for your car at the time of the loss. Third Party, Fire and Theft cover does not pay out for own vehicle damage except for fire, theft, illegal conversion, uninsured third party (up to $4,000), and windscreen/window glass. TP Third Party Only cover does not pay out for own vehicle damage except in the case of an uninsured third party accident claim, where the maximum is the lesser of market value or $4,000	In the case of partial loss to your car we'll automatically reinstate your car sum insured to its pre-loss cover value after we meet any claim and repairs have been completed.
Trade Me Insurance 3 tier wordings · 2024-09-01	Comp yes — Comprehensive cover is on agreed value basis TPFT no TP no	Comp yes — Third party fire and theft cover is on market value basis TPFT yes TP no	Comp For a total loss: we'll pay you the agreed value for your car (Comprehensive). Fire and theft cover under third-party-fire-and-theft is on market value basis. TPFT We'll pay you the market value for your car at the time of the loss. Third Party Fire and Theft does not pay out for own vehicle collision damage. TP Third Party Only tier does not pay out for own vehicle damage; cover is limited to legal liability for accidental physical property damage to third parties	In the case of partial loss to your car we'll automatically reinstate your car sum insured to its pre-loss cover value after we meet any claim and repairs have been completed.
Vero Insurance 1 wording · 2025-12-01 · +2 variant	yes — 'If your schedule shows you're covered for agreed value, this is the maximum we'll pay for your vehicle.'	yes — 'If your schedule shows you're covered for market value, this is the maximum we'll pay for your vehicle.'	If your schedule shows you're covered for agreed value, this is the maximum we'll pay for your vehicle. If your schedule shows you're covered for market value, this is the maximum we'll pay for your vehicle.	no mention found