This is arguably the most important comparison point. Failing to comprehend what this actually means and buying a policy that has such a clause within it, could literally mean the difference of hundreds, perhaps even thousands of pounds at the time of claim.
If your car is declared a Total Loss (written off) as a result of accident, fire or theft, your motor insurance policy provider will pay you what they believe the car to be worth at the time of that claim. If your GAP insurance policy has a Market Value clause in relation to the motor insurance pay-out (E.g. if it says, "...will pay the difference between the Market Value of the vehicle at the time of loss and..." then seperately defines "Market Value" as a value given by one of the industry valuation guides (such as Glass' or CAP Guide), the GAP Insurance provider actually reserves the right to NOT cover any amount by which your Motor Insurer pays out less than the figure quoted by their chosen guide.
Of course, you have barely any influence over how much your Motor Insurer will pay out for your car and you certainly have no influence whatsoever over what any of the guides might state your vehicle is worth!
It doesn't stop there though, because the worst GAP insurance policies also reserve the right to revalue your vehicle at the time you bought it. What this means is that they'll look back at the price you paid for your vehicle originally and compare that to the value that their chosen guide was stating your vehicle was worth at the time you bought it. If they find that the price you paid was more than the value stated in the guide, they'll NOT cover the amount that the figure you paid exceeded the value in the guide.
Of course, there could be a whole host of reasons as to why you paid more than the guide said your vehicle was worth. Not least that perhaps there was more demand for that particular vehicle at the time you bought it than the guide was giving credit for - it is afterall just a "guide" figure and of course the dealer on-the-front-line (so to speak) would naturally want to maximise his sale potential.
Whatever the reason, is it fair that you should suffer financially if your Motor Insurer pays out less than a "guide" expects, and/or if you originally paid a little more for your car than a "guide" thinks you should - particularly when you consider that you have barely any influence over the amount paid out by the Motor Insurer and certainly no influence at all over the figures published in any industry guide?
We don't think it's fair at all. Which is why our policies have neither of these horrid "Market Value" clauses.
To clarify though, if your Motor Insurer at the time of any claim does pay out less than the likes of Glass' Guide suggest they should have done, we do reserve the right to pursue your Motor Insurer for reimbursement, but that wouldn't affect our GAP insurance policy payout to you!