We all know that this economy has negatively affected the values of our homes, trucks, trailers & commercial equipment. But have you adjusted the values on your commercial truck insurance policy? We are seeing too many of our clients keeping outdated stated values on their truck insurance policies. Then when there is a big loss, they are shocked to find out that their truck or trailer is not worth what it used to be worth.
Recently one of our sand & gravel truckers had an accident involving a dump trailer. It was damaged but not totalled. They had the trailer insured for $20,000, which was accurate in 2006 but not today. He had declined a suggestion to re-evaluate his values for depreciation at renewal. It turned out that the current market value of the trailer was only about $7,500 due to a glut of dump trailers on the market today. What a shock! But that's the economy we're in, especially in areas like California that were booming earlier in the decade but are now seeing little or no new construction.
So when your insurance agent asks you to review the truck and trailer values on your policy, do it! And make sure to get another opinion on the values if you're not sure. Local dealers are often a good resource as they know what is selling and for what prices.
If your truck insurance agent is not asking to review your values, then you should be with one who is. At Berrier Insurance, we do an annual review of your policy and we can change your values anytime during the year. We've been writing truck insurance since 1981, are A+ rated by the Better Business Bureau and we're well trained in the special needs of truckers. If you're in California, Oregon, Arizona or Nevada, give us a call today 888-472-4915 or visit us online BerrierInsurance.com.
Thursday, January 28, 2010
Are Your Trucks and Trailers Over Insured?
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