Insufficient Equipment Values Can Impact Claims
Did you know that insufficient equipment values of the tractors and trailers listed on your insurance policy can have an impact in the event a claim is filed?
According to Transport Topics, a publication by the American Trucking Associations, the average price for a used Class 8 vehicle hit $82,352 in December 2021. Compared to 2020, when prices were $49,634, this is an increase of 66% in one year!
You may be experiencing this dramatic rise in prices yourself if you are in the market to buy a new or used truck or trailer. But what about the equipment you already own?
For example, imagine you own a trailer today that was purchased three years ago for $40,000. Your insurance policy may indicate this trailer is insured for a stated limit of $40,000.
If that trailer is totaled in an accident tomorrow, your insurance policy will pay only $40,000 for the damaged trailer. But it might cost $75,000 to purchase a replacement.
What Can You Do?
This is why it is important to review your policy regularly to make sure the value listed for your equipment is accurate.
At Great West Casualty Company, we invite our insured motor carriers to request an update of the value for the equipment listed on their policies. This can be done at any time during the policy period, not just at renewal time.
Taking this step now can prevent a difficult situation from becoming worse in the future.
As always, you can count on the commercial truck insurance professionals at The Daniel & Henry Company to assist you through challenging claims and all of our insurance, risk management, and safety issues. Contact us today to discuss solutions for your transportation risk management program.
Agencies – Feel free to forward this information to your customers.
