When the value of a vehicle is difficult to assess, insurance companies rely on stated amounts. A stated amount is the value you place on your vehicle and provide to your insurance company. Stated amounts allow vehicle owners to incorporate the condition of their vehicle to account for the value of any equipment or special upgrades that have been added.
How to Determine Stated Amount for Your Vehicle
There are a few sources you can use to determine the stated amount of your commercial vehicle that include dealerships, manufacturers, and lending or financial institutions. You can also consult Truck Blue Book or Price Digests.
When determining a stated amount, remember to account for the following:
- Vehicle condition and mileage
- Special equipment that has been added
- Vehicle upgrades
- Engine or major component rebuilds
The Importance of Accurate Stated Amounts
The actual amount you receive in the event of a loss may be less than the stated amount. When you file a claim, insurance companies will typically pay you whichever amount is less from the following:
- Actual Cash Value (ACV) of the damaged property
- Cost to repair or replace the damaged property
- Limit of insurance (stated amount) in the endorsement
To ensure you get the proper coverage, it’s important to be as accurate as possible when estimating your vehicle’s stated amount.
Commercial Vehicle Insurance Quote
If you’re shopping for commercial vehicle insurance, Freeway Insurance can help you get low-cost coverage. We compare quotes from top insurance companies to find you the best coverage at the lowest price. Then, we present you with the best option that fits the needs of your business. Request your free commercial vehicle insurance quote online or over the phone at 800-777-5620 to get started.