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Yes, correct, mine is insured for “market value” - new for old replacement if full loss during the first 2 years. But the funniest thing is that the insurance cost tends to go up when despite the car depreciating... So something is wrong with the Australian insurance market... My F13 was at the end insured for comparable value to yours now, but still the insurance cost was appr. $3500 AUD, so nearly double to yours (assuming $2.2k is NZD)... Maybe there are so many !diots Driving M6s in Australia so insurance companies risk rating is miserable...
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