• Thank you for visiting HeavyEquipmentForums.com! Our objective is to provide industry professionals a place to gather to exchange questions, answers and ideas. We welcome you to register using the "Register" icon at the top of the page. We'd appreciate any help you can offer in spreading the word of our new site. The more members that join, the bigger resource for all to enjoy. Thank you!

Late model truck totalled

Hallback

Senior Member
Joined
Jun 1, 2011
Messages
2,306
Location
Aberdeen Wa.
Occupation
Gyppo tower logger
Is have any of you guys had a late model truck that got totaled?
Like say you had a 2020 with under 40000 miles on it that got totaled, how would insurance handle something like that? I have heard that they will pay fair market value but also many horror stories where people don't even get enough to cover what they owe on them.

This is all hypothetical of course and many times policy dependent.
 

NepeanGC

Well-Known Member
Joined
Mar 18, 2017
Messages
203
Location
Ottawa, Ontario
Occupation
#dirtherder
All depends on your policy, and insurance company. Some are great, some are awful.

Local contractor here had a brand spanking new 2021 Western Star 4900 crashed it's first week out. Driver rolled it on its side with 21 tons of gravel in the box. Wrecked the box, and twisted the heck out of the frame and cab. From what I heard from the dealer he got replacement cost for it, and immediately bought a brand new one.
 

CM1995

Administrator
Joined
Jan 21, 2007
Messages
13,247
Location
Alabama
Occupation
Running what I brung and taking what I win
It really depends on the fine print in your insurance policy and state regulations on said policy.
 

Hallback

Senior Member
Joined
Jun 1, 2011
Messages
2,306
Location
Aberdeen Wa.
Occupation
Gyppo tower logger
That's what I'm wondering because replacement cost for a new long logger setup is over $300k right now.
 

crane operator

Senior Member
Joined
Mar 27, 2009
Messages
8,274
Location
sw missouri
Yeah- with the prices truckshop was talking for the new stuff his boss was buying, a insurance company giving out a check for what you paid for it new a year ago, isn't nearly going to cover a new truck.

For me, my insurance company has me list a value for all of the cranes, trucks, trailers and equipment. It gets updated every year. I'm sure if someone pulls out in front of one of the guys, and I have something get totalled, my value that I give them, is going to have a bearing on what my check is.

I have kind of upped the value on my older semi, trucks and trailers every year the last couple years, just because I have two pre 2000's trucks. With what prices have just done in the last year, replacing either one has really gone up. But if I up the insurance values, it just costs me more $$, that I may never see.

What used to be a $15,000 truck, it now seems they are suddenly $25,000+ trucks, and in some peoples wild ideas, they are $50,000 trucks.

Truckshop posted that their last new trucks were like 180,000, and he thought they could get $230,000 for them. So do you insure them at 230 or 180?
 

John C.

Senior Member
Joined
Jun 11, 2007
Messages
12,865
Location
Northwest
Occupation
Machinery & Equipment Appraiser
Look in the insurance contract at the declarations page. There should be something that says "what we will pay." They will give one of two definitions. Fair Market Value and then define it or Replacement Cost New less depreciation and they will sort of define that. Most contracts on business insurance will be Replacement Cost New less depreciation. They will take the cost of a new asset and assign a life cycle to it, say seven years or a number of miles. These are just for example only. It works kind of like straight line depreciation that your accountant uses. If you use a seven year depreciation, you need to figure what the asset will be worth at the end of seven years. You will reduce your purchase price by that amount and then divide that amount by seven. You reduce the adjusted purchase price by that for the first year's depreciation. I don't recall off hand how the rest of the formula works but I have it somewhere here. I've seen some arbitrary percentage factors involved as well. Logging stuff is seen as a hard use so the depreciation factors may take that into account. I've known it to be true that an asset might sell for more than what was paid for the item. The problem is that in insurance, there aren't supposed to be any winners.

If you have an insurance company that you have been dealing with for many years and are footing a big bill each year, they will be pretty accommodating on the first accident. Probably cover the loss with a replacement except for the deductible. It's when you have multiple accidents or your asset is three or more years old that things can get dicey. You might also ask your agent if they hire independent insurance adjusters to handle claims. Those guys usually get paid for limiting payouts on claims.

Hope this helps.
 

suladas

Senior Member
Joined
Jun 30, 2016
Messages
1,731
Location
Canada
Whatever they pay, I think the only assurance is they are going to screw you over.

Had pickup stolen last spring and tools, the truck value I got was pretty decent, it was the tools, slip tank, etc that they screw you on. Most tools were 25-50% of new cost, even if only 1-2 years old. $1000 slip tank and pump got like $200.
 

John C.

Senior Member
Joined
Jun 11, 2007
Messages
12,865
Location
Northwest
Occupation
Machinery & Equipment Appraiser
I used an inflation calculator to figure what $35,000 is worth now and it came up with $182,903. Is that what a new truck costs now? You could also check the markets for 1975 Peterbilt trucks to confirm. What are thirty year old trucks going for now. Basement prices on runners where the engines would start and the tires held air used to be ten to fifteen thousand.
 

JPV

Senior Member
Joined
Aug 20, 2015
Messages
756
Location
S.W. Washington
Geez Hallback, I thought you had a wrecked truck on your hands based on the title, interesting discussion though.
 

Truck Shop

Senior Member
Joined
Dec 7, 2015
Messages
16,538
Location
WWW.
I used an inflation calculator to figure what $35,000 is worth now and it came up with $182,903. Is that what a new truck costs now? You could also check the markets for 1975 Peterbilt trucks to confirm. What are thirty year old trucks going for now. Basement prices on runners where the engines would start and the tires held air used to be ten to fifteen thousand.

Yes-and a lot more depending.
 

Truck Shop

Senior Member
Joined
Dec 7, 2015
Messages
16,538
Location
WWW.
On another group/forum I visit this 1977 VIT A model is posted for $30,000. Needs a complete
interior/full of mouse crap. Bad electrical, A model Cat, the truck is shot all the way around/
would take another $100,000 plus to make it presentable. And he has people biting at it.
One area that also is driving the older used truck market is toy/show trucks. On that same group five rigs mainly KW/Petes have been gobbled up in just the last 4 days. Old 351/359/
W900A's are bringing stupid money. It's the I want one of those Too/Me Too things.

274076123_1566045543767380_2823751219410889693_n.jpg
 
Top