Insurance
TOWERS
INSURANCE
$TATED AMOUNT vs CO$T NEW
I
s your Comprehensive and Collision coverage for your power units and/or trailers written on a Stated Amount or Cost New (ACV) basis? Not knowing the difference could cost you thousands at the time of a loss. Imagine, your prized heavy-duty wrecker was just the subject of an unforeseen accident and your insurance company has deemed it a total loss after identifying the extent of the damages. How and on what basis your full coverage (comprehensive and collision) insurance was written could be the difference between being in an equity or inequity position which could ultimately cost you thousands. According to their contract, the insurance carrier owes the fair market value toward the replacement of the insured power unit regardless of how much is owed to the respective lienholder. If your policy is written on a Stated Amount basis, that amount is the MOST the insurance company will pay, minus your deductible toward the replacement of your power unit regardless of its fair market value. Conversely, if your policy is written on a Cost New basis, the insurance company will pay the fair market value even if it is more than what is listed as the COST NEW amount on the actual policy.
In conclusion, when your insurance policy is written on Originally established in 1950, Mike erage in the industry. With a growing a Stated Amount basis, you should review the Keith Insurance has four Missouri locabasevalue of “A” ratedlisted carriers, we are able to tions offering a broad range of insurance offer coverage in most states with no on the policy with your insurance agent to make sure it products and services. Throughout these radius restrictions. we have taken pride in helping our Our team of Towing & Recovery specorresponds with theyears, fair market value. Since power units customers understand and select the cialists includes Curtis Cooper, CPCU, balance between affordability and Amy Berry, CIC, Amy Sockwell, CISR, depreciate, it is vital right to adjust these values downward quality of coverage. MKI focuses on keepJamie Harrelson, CISR, and our claims ing the interest of our client’s first and all annually with your representation on an annual basis. If employees strive to exceed customer on every your agent sits downexpectations with you atlevel. renewal, that is the perfect A niche agency, MKI has been successful in the details. Towing & Recovery Industry time to work out these fine Also, and of note, when by partnering with major Tow & Recovery carriers and fostering these relationships a power unit is added by endorsement during the policy to be able to offer our insureds the best and the most comprehensive cov- value of the term, be certain to letprices your agent know the power unit or trailer given the current market value in your to fit your insurance needs. Not all risks respective operating territory. are identical; years in business, your own loss experience, driver experience, and Premium comparisons between polices written onwill affect your insurance type of business cost. They understand your business and Stated Amount vs CostCindy New are LaVitte, roughly theyour same given the Horn, Janice and Bryan business needs. They wear many are a unit at Weiss Insurance hats as independent agents, representing overall underwritingWestfall criteria on an account-to-account basis. that specializes in various transportation various insurance companies, which risks. They design your insurance policy allow them to “design” a policy for you. Meaning some policies written on a Stated Amount are more premium dollars than policies written on a Cost New basis…and vice versa. For additional information on this or any other insurance topic you are dealing with, please email or give us a call! For more information, visit www.mkeithins.com.
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Example: Your insured power unit is listed on the policy for $100,000. At the time of the loss, the market value for your power unit is $120,000. When written on a Stated Amount basis, the insurance company will pay $100,000 minus your deductible. Given the same example, if the policy is written on a Cost New basis, the insurance carrier would pay $120,000 minus your respective deductible. Of note, the insurance policy will not pay for the Federal Excise Tax of 12%. www.towprofessional.com
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