Calculators & guides
How Your Car's Value Is Decided: Retail, Market and Trade
By Sipho Dlamini · 5 min read · Updated 24 June 2026
- Source
- Auto Dealers' Guide values at time of loss
- Three figures
- Retail (highest), market, trade (lowest)
- Adjusters
- Mileage, condition, extras, accident history
Insurers decide your car's value using a recognised vehicle value guide (the Auto Dealers' Guide) to set retail, market or trade value at the time of loss, then adjust for mileage, condition and extras - and the basis you chose on the policy decides which figure they pay. Knowing how it works helps you pick the right insured value and avoid a payout shock.
Retail is the highest figure, trade the lowest, with market in between. The same car can have three different 'values' depending on the basis.
This guide explains where the numbers come from and what nudges them up or down.
Where the value comes from
South African insurers typically use a recognised trade guide - the Auto Dealers' Guide - that publishes retail and trade values per make, model and year. At claim time, they look up your car, take the value on your chosen basis at the date of loss, then adjust for the car's actual mileage and condition.
So your payout is not a fixed sticker price - it reflects the car's standing at the moment it was lost.
Retail, market and trade
| Basis | What it represents | Where it sits |
|---|---|---|
| Retail | A dealer's selling price | Highest |
| Market | Average of retail and trade | Middle |
| Trade | A dealer's buying price | Lowest |
If you insured for trade, expect the lowest payout; for retail, the highest. The premium tracks the basis - higher value, higher premium.
What pushes your value up or down
On top of the guide figure, these adjust the final number:
- Mileage: well below average lifts it, very high mileage lowers it.
- Condition: service history and good condition help; damage and wear hurt.
- Optional extras and accessories, if declared and covered.
- Previous accident or write-off history.
- A non-standard or grey-import model can be harder to value.
Declaring extras and keeping a service history protect your payout.
Agreed value: the exception
Most ordinary policies pay the guide value at the time of loss, which falls over time as the car depreciates. Some specialist or classic-car policies offer an agreed value, fixed when you take the policy, which can suit a car that does not depreciate normally. For everyday cars, expect the guide-based approach.
Why your payout can feel low
Cars depreciate quickly, so a payout based on the current guide value can be well below what you paid a year or two ago. This is exactly why your insured value basis and shortfall cover matter:
- Insure for retail or market if you want to replace like-for-like.
- Add shortfall (gap) cover if you owe the bank more than the car is now worth.
See our cover guide for sizing this correctly.
How to keep your valuation fair
- Choose the value basis deliberately - do not default to trade just to save a little.
- Keep a full service history and good photos of the car's condition.
- Declare accessories and extras so they count.
- Review your insured value at renewal as the car ages.
- If you dispute a write-off valuation, ask which guide and figures were used, and provide evidence of condition or low mileage.
Frequently asked questions
How do insurers decide my car's value?
They use a recognised vehicle value guide (the Auto Dealers' Guide) to find retail, market or trade value for your make, model and year at the time of loss, then adjust for mileage, condition and declared extras. The basis you chose decides which figure they pay.
What is the difference between retail, market and trade value?
Retail is roughly a dealer's selling price (highest), trade is a dealer's buying price (lowest), and market is the average of the two. The higher the basis you insure for, the bigger the payout and the higher the premium.
Why is my insurance payout lower than what I paid?
Cars depreciate quickly, so the current guide value is often well below your purchase price. The payout reflects the car's value at the time of loss, not what you originally paid. Insuring for retail or market and adding shortfall cover helps close that gap.
Can I dispute the value my insurer offered?
Yes. Ask which guide and figures they used and on what basis, then provide evidence such as low mileage, full service history or good condition to support a higher value. If unresolved, you can escalate to the Ombud (OSTI / NFO).
Does mileage affect my car's insured value?
Yes. Mileage well below average for the model year can lift the value, while very high mileage lowers it. Condition, service history and declared extras also adjust the final figure on top of the guide value.
What is an agreed value policy?
An agreed value is a fixed sum set when you take the policy, used mainly for classic or specialist cars that do not depreciate normally. Most ordinary motor policies instead pay the guide value at the time of loss, which falls as the car ages.
Should I insure for retail or trade value?
Retail pays the most and costs the most; trade pays the least and costs the least. If you want to replace the car after a write-off, retail or market is safer. Only choose trade if you could absorb the shortfall yourself.
