The retail value is the highest of the 3. Simply put, it's the average price for which a dealer would sell a car, taking into account its age, condition and mileage. The trade value is what a car dealer would pay you for your car, should you trade it in for another. And the market value is what you'd be able to sell your car for, should you sell it privately. A fair market value is usually based on the difference between the retail value and the trade value. As the king and his court only have your best interests at heart, we advise you to insure your car for its retail value. Should your car then be stolen or hi-jacked without being recovered, or written off in an accident… We'll pay you out according to your car's retail value at the time of the loss, less the basic excess amount and any other relevant excess amounts payable by you, as well as the amount that you still owe the finance institution (if applicable). This will enable you to replace your car with a similar model. We know that your car means the world to you, but in reality it's what it's worth in the Auto Dealers' Guide that counts! So to determine your car's retail value at the time of the loss, we will refer to this guide. Should your car not be listed there, we'll obtain its value from a suitable source.