Savvy Owner Operators know that after an accident, the insurance company will look at the vehicle’s Stated Amount and Actual Cash Value (ACV) and pay whichever IS LESS. You, the Owner Op, chose the Stated Amount at the start of your Commercial Auto policy. If your policy started months ago, the figure you chose THEN could result in an Under Insured truck NOW. How so?
DAT Freight & Analytics reports that along with an 82% drop in auction inventory, some used big trucks are actually selling at twice their values of last year. Lots of chatter out there as to why, but Price Digests Blogs support the estimate that up to 65% of all commercial vehicles may be underinsured now.
So if prices of used trucks have gone UP, and the Stated Amount on your current insurance is LOWER than the Actual Value of your unit, then your now undervalued vehicle may not cover a full replacement if you experience a total loss.
To see what your commercial truck is worth today, a number of insurance companies suggest using Price Digests for Stated Amount on Truck
Truck Paper for Commercial Truck Values is another source, and if your truck is financed check in with your lender for advisement.
Over the years I’ve always been impressed with how accurate Owner Ops are in tracking the changing value of their equipment at their yearly CIS Renewal Reviews But we’re all a little distracted right now, so even if you aren’t renewing this month it’s still a good idea to review your Stated Amount today.