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Is my truck safe?

Is my truck safe?



We are living in different and unpredictable times since the pandemic began. Life is constantly changing and so fast that, in many cases, it is difficult to realize what is happening around us because we are busy with our daily routine.

In recent months, the prices of many things have increased considerably. For that reason, I felt it necessary to focus on the dramatic increase in the prices of trucks and trailers.

If you are looking for a truck or trailer, you must have realized that prices have almost doubled (or more) compared to last year due to the shortage of vehicles, the production delay due to lack of parts and labor, among others, have caused a never-before-seen increase in prices.

In normal times, we recommend depreciating the value of vehicles annually in order to lower our insurance payment. Others prefer to insure their vehicles only for the amount they owe to the financier.
This is not recommended, since, if your truck is declared a total loss, the financial company will receive the money that is owed and they will not give you anything. If you do not have savings, you will not be able to give a down payment to buy another truck. Given the high cost of vehicles, finance companies are asking for quite high down payments. Therefore, it is always recommended to be aware of the market value so as not to overvalue them or insure them for too little.

Physical damage insurance in the event of a total loss will pay you based on 2 criteria:
1) The amount for which your vehicles are insured.
2) The value of the vehicles in the market.

Of these 2 options, the insurance company will choose the one that is less. For example, if you have your truck insured for $ 40,000 and its market value is now $ 75,000. Since you were paying insurance for $ 40,000, the insurance company will pay you that amount and it will not be enough to replace your equipment. Today if you want to buy a truck in good condition, be prepared to pay more than $ 100,000.

If you are an owner operator, we want to recommend that you investigate the current price of your vehicles and contact your insurance companies to update the values so that, if something unforeseen happens, you have enough money to be able to replace your vehicles or at least give a good down payment and not be too indebted.

Remember that you should not overvalue the vehicles. For example: if the market value of your truck is $ 75,000 and you insure it for $ 100,000. The insurance company will pay you only $ 75,000 because that is the market value of your vehicle.

We hope this information is useful. Have a safe and blessed day.







Safety at the Wheel

Autor

Edic.: 174
Autor: Juan Peña
Date: 1/2022


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