Picture: ISTOCK
Picture: ISTOCK

Use a professional broker to avoid undervaluing your vehicle, says Vis Govender, principal at PSG Insure Bryanston.

Send you broker the purchase invoice and/or registration certificate to ensure that the make and model are accurately reflected. Govender says a consumer who insured a Maserati but left off the letters "SI" from the model number had a R750,000 shortfall in value when he claimed.

Also send invoices (with accurate descriptions) for all after-market fitted extras, he says, including any added by the previous owner or the dealership.

Don't forget any enhancements to the vehicle after you have purchased your policy, he adds.

The TransUnion M&M database is adequate for most vehicles. But if your vehicle is rare, unique, a limited edition, a classic or vintage, or has specific uncommon extras installed, ask your broker to insure the vehicle on an agreed-value basis.

If your vehicle is older and in above-average condition with low mileage, check what your vehicle sells for in the market and use that to determine the value, says Marius Steyn, technical underwriter manager at Sanlam.

Market forces in a particular area may also have an impact on the value of your car. For instance, your particular vehicle may be more in demand in Mpumalanga than in the Cape.

Have vehicle extras valued by a reputable dealer in your area, Steyn says.

Vehicles depreciate in value every year and so does the value of any extras. If you have listed the extras, as a guideline you can depreciate this value by an average of 15% a year, Steyn says.