2022 Under insured?

[luebri]

As someone that should be getting my 2022 Lariat ER in the next couple of weeks. A question those that have a 2022 already... based on resale market (i.e. flipping for profit) and the 10-20% price increases for 2023 model if insurance coverage is at MSRP replacement value isn't their risk of being under insured? Has anyone addressed this with their insurance company / broker?

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[Boltupfan]

I’m an insurance underwriter. As long as your policy says that claims are settled on an “actual cash value” you can rest assured that if totaled, the value that the insurance company would have to pay you would be based upon the resale market value for the vehicle. They might give you some difficulty in claims if this happens because it could be said that some percentage of average sales would be based upon new sales which would be at MSPR and drive down the average value of vehicle sales used as examples. You should be able to point out the argument that those outliers should be thrown out of the valuation estimate for the current actual cash value of the vehicle because of the reservation requirement barring you from being able to get one new like that.

 

[DKZB]

I’m an insurance underwriter. As long as your policy says that claims are settled on an “actual cash value” you can rest assured that if totaled, the value that the insurance company would have to pay you would be based upon the resale market value for the vehicle. They might give you some difficulty in claims if this happens because it could be said that some percentage of average sales would be based upon new sales which would be at MSPR and drive down the average value of vehicle sales used as examples. You should be able to point out the argument that those outliers should be thrown out of the valuation estimate for the current actual cash value of the vehicle because of the reservation requirement barring you from being able to get one new like that.

I suggest you talk to a good licensed insurance broker in your area. There are a lot of nuances to making sure you have the right coverage for your specific situation. For example, it is possible that “Replacement Cost“ coverage fits what you are looking for better than the “Actual Cash Value” method mentioned earlier.

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