What is market value?
The market value is the amount that would be obtained for a used good if it were put up for sale. In the field of insurance, the market value is that of the object that has been insured, for example, a vehicle, just before a claim occurs. Its value will depend on:
- The age of the asset.
- Its state of preservation.
- Supply and demand in the second-hand market.
The market value is used as a reference to establish the compensation of a car insurance if the car is already several years old. Sometimes some companies increase this amount, paying what is known as an enhanced market value.
How the market value is calculated
If you want to calculate the market value of a vehicle, you can use the tables published each year by the Ministry of Finance, which include the updated average prices on the market for cars, 4x4s and motorcycles, as well as recreational boats.