If you currently have Physical Damage coverage, the value of your vehicle/equipment has likely has gone up,
and you might be underinsured.
With the steady increase in values of trucks, vehicles, and equipment, you may risk being underinsured. If you have a claim that results in damage or that totals your truck, vehicle or equipment, your current stated amount may be lower than the Actual Cash Value at the time of the loss. Finding a comparable replacement truck/equipment may prove difficult or impossible with your current stated amount.
Accurate stated amounts are vital because they affect how insurance companies process and pay claims. In the event of an accident, the claims representatives will compare the stated value policyholders provide to us against the vehicle’s actual cash value (ACV) at the time of the accident, and pay out the lesser of these two amounts. That is why the stated amount needs to be as accurate as possible.
For example:
Recently, a 2017 Freightliner was in an accident and was totaled. The insured had the truck insured with a stated amount of $ 42,000. The Actual Cash Value determined by the adjuster at the time of the loss was almost $90,000 making a replacement harder to come by and resulting in more out of pocket expense for the insured to replace his truck.
With the price of used semi-trucks and trailers at all-time highs, it is strongly recommended that policyholders review their policies and, if necessary, update the stated amounts.
Please check the value of your truck/equipment by visiting www.truckpaper.com or talk to a knowledgeable dealership. If you find the value has gone up considerably, contact us at V.I.V. Insurance so we can update your policy. We recommend you research the current value of the truck and not just the pay-off amount.
If you do not currently carry Physical Damage on your truck, vehicle or equipment and would like to add, please contact us today!