COMMERCIAL VEHICLES – IS THE STATED AMOUNT IMPORTANT?
When you’re coming up on your yearly commercial auto renewal, a good insurance broker is going to ask you to review your Power Units and determine whether the stated value for each power unit is accurate?
In a total loss/wrecked truck situation, the insurance company will look at your stated amount and the actual cash value of your vehicle and pay whichever is less. There is no benefit to your company to list the stated amount of your vehicle at a higher cost than its actually worth.
I recommend being as accurate as possible when putting a stated amount on your power unit. Take the time to check out websites like commercialtrucktrader.com or truckpaper.com to compare similar trucks. Consider the year, mileage, condition, and any upgrades you’ve made to the vehicle that year. Remember, if your stated amount was $50,000 last year, chances are the vehicle has depreciated and is worth a little less the following year. Don’t be afraid to reach out to manufacturers or truck dealerships to get their opinion of what they would value your truck at.
If your team needs assistance with your commercial truck insurance, safety programs, or establishing a good recordkeeping system, please contact the transportation insurance professionals at The Daniel & Henry Company today.