What does the purchase value rule entail?

The first requirement for taking advantage of the purchase value provision is that the used car must be insured under a limited comprehensive or all-risk policy. The replacement value coverage always has a maximum validity period. However, this varies by insurer. It is often one, two, or three years. This means that a one-year replacement value coverage expires at the end of that year. In addition, you must be able to present the purchase receipt, and you must have purchased the car from an authorized dealership.

The difference between the purchase price and the replacement value

Many auto insurers offer a replacement value policy for new cars. This policy allows you to buy a new car if your current car is totaled. This policy does not apply to used cars. When buying a used car, you can opt for the purchase price policy. Under this policy, you will not receive the replacement value, but rather the purchase price of the car should it be declared a total loss within the policy’s maximum validity period.

Car insurance companies' terms and conditions, including the car's purchase price

More and more insurers are including the replacement cost provision in their policy terms and conditions. This provision can vary significantly from one insurer to another. Below, we’ve listed the most important terms for you, which differ among most insurers:

• Validity of the Purchase Value Regulation
• Maximum purchase value
• Age of the car
• Place of Purchase

Below is a brief explanation of each of the above conditions.

Validity of the Purchase Value Regulation

As mentioned earlier, the purchase value rule always has a maximum validity period. This is the maximum period during which you can take advantage of this rule. Often, this maximum validity period is one, two, or three years. After that time, the purchase value rule expires.

Maximum purchase value

An insurer may set a maximum purchase value for the car. One insurer may not set a maximum amount, while another may set a maximum amount of, for example, €35,000. This means that the amount you pay for the car cannot exceed that limit. If the amount exceeds the maximum purchase price set by the insurer, you will not be able to take advantage of the purchase value provision with that insurer.

Age of the car

The maximum age of the car may also vary among insurers. One insurer may stipulate that the car cannot be older than 5 years, while another insurer may not impose a maximum age limit.

Place of Purchase

In some cases, you can only take advantage of the purchase price adjustment if you bought the car from a brand-authorized dealer or a BOVAG-certified dealership.

Compare Insurers Based on the Purchase Price Rule

At www.alpina.nl, you can easily compare different auto insurance providers. When comparing auto insurance providers, be sure to pay attention to the terms and conditions mentioned above regarding the replacement value policy. Do you have a question? Check out our frequently asked questions. There, you’ll find the most common questions for each product.

Are you having trouble figuring it out? Please contact us. We're happy to help. You can reach us Monday through Friday from 8:30 a.m. to 5:30 p.m. at 088-6883700.