When I checked with RACV, they confirmed that the 'Market Value' policy provides new for old replacement during the first 2 years of ownership. If the car cannot be repaired, they will replace it with the a new car of the same model. If the model has been updated, then the replacement will be a new car of the updated version. If the car is discontinued, then they will try to find an equivalent, but if no equivalent exists they will pay out based on market value at time of accident considering age mileage etc. Basically, you will get a new car and will only be left out of pocket if Tesla stops making the Model 3 within the next 2 years. The insurance premium quote was a couple of hundred dollars cheaper at Market Value vs Agreed Value (at total cost including GST, LCT, delivery fee, etc.) Personally, I am planning to go with Market Value for the first 2 years then reassess the premium differential at that point again.