Reminder of Retail value booster benefit
Supply chain disruptions seen across the globe have had a major impact on the vehicle retail industry. The difficulty in sourcing car parts has led to scarcity in the supply of quality used vehicles, which in turn resulted in a significant increase in used vehicle prices.
According to Transunion, the Vehicle Pricing Index (VPI) increased to 7.9% in the first quarter of 2022 compared to 3.7% in the first quarter of 20211.
With this increase in the price of used vehicles, some clients may be of the view that they would be able to sell their vehicle for a higher amount than its current retail value in the open market given the current vehicle condition. To help clients make sure that their vehicles are sufficiently insured, we offer them the Retail value booster benefit. This benefit allows clients to boost the sum insured value of their vehicle by an additional 15% of the vehicle's retail value.
How the Retail value booster works
- If the vehicle is written off, stolen or hijacked, we will pay the replacement value of a new motor vehicle of a similar make and model at the date of loss if the vehicle is less than 12 months old from the date of first registration.
- If the vehicle is older than 12 months, we will pay the retail value plus 15% based on the current retail value of the vehicle at the date of loss.
- The Retail value booster is an optional benefit available on vehicles which are comprehensively insured.
- This benefit is not available for motorcycles and trailers.
Make sure your clients know about the Retail value booster so that they can get the best cover for their needs. You can read more about this benefit in our Motor innovations one-pager.