Archive for July 2020

Car Value Insurance Claims: The Difference Between Actual Cash Value And Replacement Value

Knowledge they say is never wasted, and as a car owner, knowing the difference between actual cash value and replacement value might come in handy if you ever need to file for car value insurance claims.

Actual Cash Value and Replacement Value

Actual Cash Value

The actual cash value of a car is what the car’s worth at any point you want to sell it. To determine this value, a number of factors are put into consideration. These factors include the age of the car and the mileage on it, wear and tear, and any damage that might have occurred due to accidents of any sort amongst others.

 In essence, what actual cash value means is the worth of your car on the market today less all the depreciation. With these in mind, it is easy to deduce that the actual cash value of a car wouldn’t be enough to get a comparable new one. What do you do then? Consider the replacement value

Replacement Value

Simply put, the replacement value is the current cost of buying a new car that is similar to your own. In ascertaining this value, no depreciation is accounted for. In fact, in many cases, and sometimes on request, the insurance firm may also cover extra expenses like sales tax, title, and transfer fees amongst others. Thus, if you are looking to be completely covered in the event of a total loss of your car due to an accident, you must take out a policy on it that includes a replacement value in its contract clause. You should note however that the added premium is much more costly than that of the actual cash value. But then, isn’t it worth it?

Note: the actual cash value policy doesn’t always include taxes. In fact, in most states, it doesn’t. Also, there’s no way the actual cash value will ever amount to the price of a similar new car. This is because once a car is driven off the lot, it begins to depreciate, and depreciation increases the longer you use it. So, if you were to sell your car just within a week of buying it, you wouldn’t get the same price you used to buy it, except you’ve made some tangible upgrades to it.

Another reason to consider taking a replacement value policy over an actual value insurance policy is if you’ve taken out a loan on the car and you’ve not yet fully paid it out. In the event that the car is totaled and you only took out an actual value insurance policy, the insurance agency will only pay out the amount the car’s worth presently on the market. That amount might not be enough to set-off the loan you took out on the car, therefore, you’d be left with settling a loan of something you no longer possess.

Keep these in mind if you were ever to take out insurance on your car or trying to make car value insurance claims.

How to Buy a New Truck

Looking at new trucks can feel overwhelming because of the financial investment you are making. However, this is your opportunity to buy exactly what you need instead of trying to make whatever you can find work for what you really need. It’s really an exciting opportunity, but one you need to research and prepare yourself to make the best possible decision.

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While you can find a model that is already fitted with a body, in most cases you will need to find a suitable cab chassis first and then a suitable body for the type of work you do. Body options include a tray, curtain slider, tipper, garbage compactor, agitator, etc. There is a wide range of options in trucks, so it is important to determine what you currently need and what you may need in the near future prior to investing.

Depending on the business you are in, you likely already know the type of body you need, it’s just finding the one that is perfect for you and your business. A new truck is going to be a significant investment for your company. While you don’t want to let the fear of a sizable investment hinder you from moving forward, you do want to be cautious in determining what is best for your business. Read on to learn three useful tips for buyers in the market for a new truck.

1. Figure out how much you need to carry.

There are several questions you need to consider when selecting a new truck. For example, what kind of materials will the truck be hauling? The type of material will determine several factors including the overall capacity and dimensional requirements, as well as the configuration type. The type of body will also be determined by the materials being handled.

You will also need to think about the Gross Vehicle Mass (GVM) to determine anticipated performance. While power measurement is something to consider, it typically will not be a determining factor due to the wide range of other factors to consider.

2. Compare specs.

Once you have a list of vehicle requirements based on what the truck will be used for, you can start looking at trucks. Choose several to compare. Get all the information you can, which will be available on the company websites and then do a side-by-side comparison of each truck, what it offers, what it can handle, and what it costs.

While you don’t want cost to be your sole determining factor, you may have areas of flexibility based on price. Being a little flexible will enable you to comparison shop and negotiate once you are ready to move forward.

3. Talk with a consultant.

After you are well educated on what you want and what options are available to you, you should talk to a truck sales consultant about what you are looking for to see how they can help. Their goal is to sell you a truck, so don’t let yourself get swayed by a smooth salesman, but they are also experts on the trucks they are selling, so they can provide a lot of great information that can broaden what you already know.

A knowledgeable consultant can work with you to track down the ideal truck for what you need if they do not already have access to one. They can also help you figure out financing that will work best for you. Sales consultants have connections with lenders that the average buyer does not.

As nerve-wracking as buying a new truck may be, having one will make your business more efficient and capable of performing the needed tasks.