Auto Haulers need additional insurance coverage when it comes to the vehicles they haul. Their cargo insurance will only cover repairs if a car is damaged in an accident, being removed from the trailer, etc. What it will not cover is the loss that a car dealer takes when the value of the brand-new damaged vehicle after it was repaired. This is where Diminished Value Coverage comes in, which will account for the actual or perceived loss in market value or resale value.
Diminished Value Insurance Coverage typically applies to Auto Haulers that are transporting new cars to dealers or high-end vehicles.
If you have any questions about this coverage or you are unsure what kind of coverages you need for your business, please contact us.
Diminished Value Coverage could vary from state to state. There are a lot of factors that come into play when determining if the coverage will apply in an accident. In most states, if you are at fault in the accident, the Diminished Value Coverage will not apply.
Ok, let’s say you start a business hauling cars. You get started, you are getting a lot of contracts and everything is going great. Then as you are hauling a load of vehicles to a dealer, someone cuts you off, clips your truck, and causes you to lose control. Two of the vehicles were damaged in the accident.
You are good for the damages to the vehicles since you have cargo coverage insurance but since you decided to skip the Diminished Value Coverage to save on your insurance premiums, you are not going to be covered for the loss in value to those two vehicles.
As a new business, you are in a very tight spot financially, which could lead to having to close your business.
Holly can educate you on commercial truck insurance no matter what you are hauling. We assist long-haul and short-haul truckers, Hazmat Carriers, Fleets, etc.
Zach is dedicated to serving all of his clients to the best of his ability. He will always shop his clients to maintain the lowest possible premiums with the best coverage.
Erica is our Renewal Specialist so there is a good chance that you will be speaking with her when your renewal comes up. She is professional, knowledgeable and fully capable of answering any questions you have.
Let our commercial truck insurance specialists provide a quote to our preferred markets.
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