Overdrive Magazine | Trucking Business News & Owner Operator Info
Issue link: http://read.dmtmag.com/i/698304
July 2016 | Overdrive | 49 • Go online to www.iowa80.com and request your FREE CATALOG of the finest selection in Chrome and Professional Trucking Accessories! • Or Call Toll Free – 866-4-IOWA80 (866-446-9280) • Shop online today! www.iowa80.com Truck Accessories For The Professional Driver GET YOUR FREE CATALOG! OD 2016 IA80com OD 061416.qxp_Layout 1 6/14/16 11:33 PM Page 1 insurers that the truck is worth as much as you claim. It's worth evaluating potential adden- dums for a damage policy, such as for towing or providing a rental truck when yours is down. For some insurers, towing is standard on all policies. Another consideration is gap insur- ance, which covers the difference between the value of the truck and the loan balance in the event of a total loss. Ramczyk said lease gap coverage is becoming more common with new equipment that depreciates quickly. under one deductible. That way, if one accident damages both units, the owner absorbs a $1,000 cost only once. Combined deductibles also can be found when bundling coverages such as physical damage and cargo insurance, Ramczyk said. For example, Sentry writes all of its physical damage policies with liability coverage included. Flatbeds are usually the most expen- sive trailers to insure, especially if they're meant for heavy-haul appli- cations and involve multiple pieces. Wilson said a dry van adds about $50 a month to a policy, and a flatbed adds $75 or more. One tricky part of damage insur- ance is determining the equipment's value. Most insurers rely on the owner's assessment, so it's beneficial to check with a dealership yearly to get an idea of your equipment's current worth. "The worst thing you want to do is have an owner-operator paying for $30,000 worth of insurance and then at the time of loss find out the truck is worth only $26,000," Libertore said. With the rising price of new equip- ment, along with the advanced tech- nology in new trucks, premiums have increased over the last three years, Ramczyk said. "Replacement of equipment in a total loss is more expensive, so you have to get enough of a premium to cover inflation," he said. Craig Benfield, a leased owner-oper- ator, drives a 1992 Peterbilt 379 short hood – "an older truck that isn't worth as much," he said. He carries only about $10,000 worth of damage cover- age through Great West Casualty. "With older trucks, it can get to the point where the insurance companies will argue with you on what it's worth," Benfield said. "I had to make a claim not too long ago when I hit a deer, and it was more than $5,000 to replace the hood and fix the front end. It was no problem through Great West, and they paid well." Libertore said keeping receipts for work and upgrades can help prove to DAMAGE CONTROL