Question: When I have a claim, how is the value of my vehicle calculated?
Answer: Great question. Most claims adjusters use actual cash value (ACV) which is a calculation of the original cost new (OCN) minus depreciation. This is then compared to the Kelly Blue Book Values and the NADA Values at trade-in (wholesale) numbers. This number is calculated considering mileage and condition and then minus your deductible if any.
You always can provide additional equipment information, repairs, and other considerations which may add value. This is critical with specialty cars, and as most limousines are not standard equipment, you can help yourself by helping the adjuster understand the unique and valuable differences with your vehicle.
Please remember that the insurance company has the choice of repair and/or replacement or payment in cash. You also have these as consideration, and should you disagree, most insurance contracts allow for arbitration at your expense.
Also, keep in mind that your professional insurance agent is not there to just help you purchase a policy, but they are there to answer questions and help you with your claims situations.
About Lee Martinez
Lee Martinez is the President of Transpo Insurance and has more than 20 years of experience in the chauffeured transportation industry as a broker, managing general agent, and an operator. He is one of only three LimoPro Council members for the Willis Programs, a board member of the Greater California Limousine Association, and he has offices in Denver; Long Beach, Calif.; and Las Vegas. His companies offer insurance products in 22 states and he insures more than 5,500 livery vehicles in those states. Martinez also developed an internet Safety Training Program which is available at www.stop-program.com and he is a managing partner of ProTrans West, a managing general agency, which offers livery insurance products to retail brokers in the 22 western states. He can be reached at (702) 364-4727 or firstname.lastname@example.org.