We met with our insurance agent today to review our coverage and I discuss replacement costs if my truck was totaled. My dually is super clean and has 65,000 actual mileage. If you go to NADA Guides and look up the value, there is not a chance the listed value would allow me to replace my truck. Thus I asked the agent to ask the underwriter about it.

The underwriter, who reportedly is a car buff said he understood perfectly and agreed with me. Since my truck is a daily driver or nearly so, it is not eligible for any special kind of coverage. He said they would consider condition and mileage, but I would not receive enough to cover replacement costs.

My concern was I get hit by some nut and am totaled and I am going to be out of pocket some serious money to replace me truck. No sure how many other here might be in the same boat.

 

A long time ago we had a 79 F250 that we bought new, after about 10 years of hard use I had it painted, interior work, new wheels & motor. I found a insurance company to put a stated amount policy on it and about 1.5 years later some clown ran a stop sign and by book value totaled it. It was repaired with a new complete front clip and frame work, all Ford parts not after market. I had all the receipts from when I refurbished it and that helped when I had it appraised for the insurance.

Denny

 

Kind of a weird situation. I had thought I could buy some kind of policy that would cover the actual replacement cost instead of what was called the actual vehicle value or what I perceive to be "book" value. Since it over 10 years old, it qualifies as an antique or specialty vehicle, but since I use it on a regular basis they will only insure it under a regular policy.

I guess as long as it is never damaged beyond repair, I should be alright. It is the same thing with RVs, which I also asked about. If you have a prized older model you keep pristine and it is totaled, good luck. Better off to use average stuff as that is all insurance is really designed to cover, as near as I can tell. As I said to the agent, I do not expect to come out ahead if I am in a bad accident, but it looks like I would really come out way behind!

 

Look for a Gap policy. Gap insurance is typically used for a loan to value on the truck but maybe there is something of like kind that would do this.


I know of one user on FTE that was hit by a drunk driver and his truck was totaled.


He had to produce receipts of his recent work and they finally paid that additional amount of his investment.

 

It's a negotiation tactic
I had the same situation with a clean sports car when someone hit me...

they offered me next to nothing for it and I said not good enough,
I asked them to go find me one in like condition and mileage and they tried, but couldn't... the two they found were beat up compared to mine...

ended up getting what I thought was a fair replacement value...

 

I agree.My 2002 was totaled by Hurricane Charley after only 21 payments I wrangled with the adjuster over the value and told him if he could find the comparably equipped low mileage truck within 500 miles I would buy it.

He couldn't even come close, which was my point exactly and in the end they upped the offer substantially and I was able to purchase a new 2005 for only the $100 deductible and about $5 more in monthly payments. Persistence paid off in my case, and I was was fortunate to have an adjuster who was willing to be reasonable.

Ideally you could pay extra for better replacement, like paying for more than rinky-dink rental car coverage.

Other than that, you have to trust that chances are high you won't be faced with a totaled truck, and if you are you will have to stand your ground and be firm.

 

It's a numbers game. They are going to argue that the premiums we are paying reflect book value, not replacement cost. But labor has gotten expensive and late model vehicles have all kinds of gee-gaws and mandatory equipment, that is labor intensive and/or expensive. Air bags, anti-lock brakes, 9 hour marathon engine removals to change a bulb (not really); It doesn't take much to "total" something so they cut a check for the limits of the policy and call it done. I guess.

 

I had a similar situation, only the vehicle was stolen and beaten to death as well as being all banged up. I provide receipts for the new long block and transmission, brake and u-joint overhauls as well as body and paint work. They could not find another Jeep Cherokee as nice and gave me my asking value as well as offering to sell the vehicle back to me for salvage value..

 

I have seen this situation play out different ways including "tough, hire an attorney, if you don't like our offer".

I actually have done inspections on RVs for an underwriter that pays actual replacement cost, but just getting the inspection is $600 (I only get part of that), and then the insurance is much higher. My agent said they do not have any way to sell me more coverage for more money, so I can go with a separate policy on the truck, but then I lose so much in multi-vehicle coverage plus the home and umbrella wrap that cost is substantial.

 

Maybe you could buy a cheapo little beater car for about $1K and call it your daily driver...then your truck might be able to qualify for the antique/speciality insurance. My '67 is insured for an amount that was agreed upon rather than a book value.

 

The obvious way is to be your own underwriter. Take what you'd pay extra and put it in an account. Obviously it'll be insufficient for a while, but before you know it, the account will replace a total loss, and the "premium" disappears... unless you want to keep contributing to the account. You'll also get the interest.

Once you can cover your own, you can drop insurance to liability/injury only, and put whatever you save on those premiums into your self-insured account.

Personally, I think it's ridiculous that I'd get $7,000 (book value) while I've paid that price many times over without a single claim. $7,000 would not come close to replacing an F250 these days with anything capable and reliable.

When it comes to the claim, especially when you're not at fault, always argue for the insurance company to make you "whole". In my case, I'd need a 3/4 or better pickup, capable of pulling 10,000#, and an 8 ft. bed. I'd also try to hold out for something that isn't white (took me too long to find one the first time) and has a manual transmission (annoyance issue). It wasn't my fault your client tried to defy physics.

 

INTEREST????? You mean that $0.75 on $10,000???? HAHAHAHAHAHA

 

Well...

an average money market account looks to get 1% right now... so $400 each year on $40,000 (enough to buy capable replacement). Not a windfall, but earning $400 per year is better than spending $600... No?

 

I have one and it's earning 0.02% right now!

 

Most insurance policies pay for fair market value in the event of a total loss. There is a company that offers new car replacement when the vehicle is only 1 or 2 years old but you pay for a higher premium and I'm not sure if it is eligible in all states. Some insurance companies can offer you a stated value policy as long you have had had an official appraisal or can document add-ons that increase the value. Classic and antique policies usually only apply if the vehicle is 20 years old or older and has some sort of intrinsic value. Tt also usually states that the vehicle is used on an occasional basis and not your daily driver. The main thing to remember(especially on an older vehicle) that most of your insurance cost goes to your liability limits and the medical or PIP coverage,depending on what state you are in. Also, regardless of the age of the vehicle, the repair costs are still the same if you suffer a partial loss. This all contributes more to your insurance premium then just what you will receive if your vehicle is totaled...yes I am in the business.....