1) Actual cash value (ACV)
When you have a claim, Truck insurance companies pay based on actual cash value of your truck. This is exactly like it sounds. It’s the market value of your truck. In personal lines of insurance some companies offer replacement value. Unfortunately this is not an option for commercial policies. Truck insurance companies will pay the lesser amount between the ACV and the Stated amount.
2) Stated Amount
If you elect to add comprehensive insurance to your policy you will have to provide the stated amount, which is your statement of the value of your truck. Your premium for Physical Damage is largely driven by the value of your truck. A good truck insurance agent will help you value your truck and take into consideration the mileage of your truck, upgrades, make and model, and comparable sales data. The Truck Blue Book is also a handy source in valuing your truck.
3) Picking the Right Amount
It’s crucial to provide an accurate stated amount. Since the insurance company pays the lesser of ACV and the Stated Amount, it does you no good to value your truck higher than it’s actually worth. Because this is typically one of the more expensive coverages, taking some time to make sure that you aren’t over insuring your truck can save you big on your premium.
Besides the Stated Amount, your deductible is the other driving force of your premium. Raising your deductible will of course lower your premium. Find an amount that you are comfortable with. You shouldn’t raise it too high to where you couldn’t meet the deductible in the case of a loss.