Why You Need to Insure Your Commercial Truck to Its Current Value
Owner-operators in the commercial trucking business need to know that their vehicle will be valued in two ways by their insurer should it be involved in an accident. The first is the stated value listed in their policy. The second is the actual cash value of the vehicle. The insurance carrier will pay the lesser of these two amounts.
What happens if the stated value in the policy is no longer accurate given the rise in commercial truck prices over the last year? Your truck would be underinsured, meaning your insurance payment would not be enough to cover a comparable vehicle should you experience a total loss. Delays in replacing your truck cost your business, and some smaller trucking firms might be irreparably damaged.
In the infographic below, we’ll share critical insights on these trends and what you need to do to make sure your commercial trucks are insured to their current value.
View Infographic Description
COMMERCIAL TRUCKING INSURANCE
IS YOUR COMMERCIAL TRUCK COVERED TO ITS CURRENT VALUE?
Class 8 Truck Values Have More Than Doubled in the Last Year1
VALUES ARE UP 103%
- Used truck prices have soared to record-breaking highs due to supply chain issues that have limited the availability of new vehicles.
- All Classes 4 through 8 have been affected.
- Prices are expected to remain elevated for some time.
An Underinsured Commercial Vehicle Could Cost You a Truckload.
- A total-loss accident could cause a devastating blow to your bottom line.
- Your claim payment will be either the stated value on your policy OR the actual cash value of your truck – whichever is less.
- If you haven’t updated your truck's stated value in the last year, your claim payment may not cover the entire cost to replace your truck.
Stated Value on Your Policy
NOW is the time to review your fleet's current value.
Contact your agent today.
1J.D. Power Valuation Services
This material does not amend, or otherwise affect, the provisions or coverages of any insurance policy issued by Northland or its affiliates. It is not a representation that coverage does or does not exist for any particular claim or loss under any such policy. Coverages depend on the facts and circumstances involved in the claim or loss, all applicable policy provisions, and any applicable law.
Availability of coverage referenced in this document can depend on underwriting qualifications and state regulations. Texas Customers: Insurance is provided by GEICO Texas County Mutual Insurance Company, and is administered by Northland Insurance Company.
© 2022 The Travelers Indemnity Company. All rights reserved. BNLSS.000C-P New 6-22
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