Agreed Value vs Market Value Insurance
If your campervan is written off, the difference between an agreed value policy and a market value policy can be £10,000 or more. Here is how they work and which one you need.
Market Value
Market value means the insurer pays whatever your van is worth on the day it is written off. They use Glass's Guide or CAP — trade values that are often 30-50% below replacement cost. For a self-build campervan, market value is almost always inadequate.
Example: You spent £30,000 on the base van and £15,000 on the conversion. Total: £45,000. The insurer's market value assessment: £18,000 because it is a "2016 panel van with a amateur conversion." You lose £27,000.
The problem is that insurance companies value the base vehicle as a van, not a campervan. The conversion work — electrical installation, insulation, windows, kitchen, furniture — is invisible to their valuation system unless you specifically agree a value.
Agreed Value
Agreed value means you and the insurer agree on the van's total worth before the policy starts. You provide an independent valuation (typically £50-150), submit photos and receipts for the conversion, and the insurer writes the agreed figure into the policy. If the van is written off, that is what you get (minus your excess).
Claim scenario: £45,000 agreed value = £45,000 payout. Your excess: £250. You receive £44,750.
Cost Difference
Agreed value policies cost roughly 10-20% more than market value. On a £500 annual premium, that is £50-100 extra. For that, you get certainty. The extra cost is effectively insurance against the insurer undervaluing your van.
Getting an Agreed Valuation
Professional valuation — A qualified vehicle assessor inspects your van and issues a report. Cost: £50-150. Accepted by most specialist campervan insurers. The report includes photos, spec details, and a justified valuation.
DIY valuation — Some insurers accept a detailed breakdown with receipts, photos, and comparable sales listings. Comfort Insurance, for example, has an online upload system where you submit evidence and they issue a valuation.
When to update — If you add significant modifications or the van appreciates (Sprites and classic campers sometimes do), update your agreed value. If you do not renew annually, your agreed value stays the same.
Which Insurers Offer Agreed Value
- Comfort Insurance — Market leader for campervan agreed value. Online valuation upload. Free to add.
- Adrian Flux — Agreed value available on most policies. Requires a professional valuation for high-value builds.
- Safely Insure — Specialists in self-builds. Require an engineer's report for builds over £30,000.
- A-Plan — Agreed value available on request. Valuation can be DIY with receipts.
- Brentacre — Offer agreed value on modified vans and self-builds.
When Market Value Might Be OK
If your van is a standard factory campervan (VW California, well-known conversion brand) under 5 years old, market value from a specialist insurer might be reasonable. Factory campers depreciate more predictably than self-builds. But even then, check the market value figure in your policy documents — if it looks low, either request a higher figure or switch to agreed value.
Verdict
For self-build campervan conversions, agreed value is the only sensible option. The £50-100 annual premium increase is trivial compared to the £10,000+ risk of being underinsured. Get a professional valuation, submit it with your application, and update it every 2-3 years.
