Insurance - Replacement Cost or Purchase Price

[PlayBall]

There have been a few posts of Maverick Hybrid owners having their vehicle totaled in an accident in spite of pictures that didn't indicate a complete wipeout. My question - with some selling prices (new & used) going for over MSRP and the likelyhood of not being able to order a replacement near-term from a Ford dealer at MSRP, what was the insurance settlement on these totaled vehicles? Some underwriters don't offer replacement vehicle coverage, just purchase price. If the settlement is only purchase price, not much chance of buying a replacement without forking out whatever premium the seller is looking to get.

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[Edge Haley]

I'd be more than "shocked" is an insurance company would pay more than MSRP + added options for a totaled Maverick of any model. As has been illustrated on this site...a unibody with thin sheet metal and lack of a typical frame...is easily totaled.

 

[MakinDoForNow]

I'd be more than "shocked" is an insurance company would pay more than MSRP + added options for a totaled Maverick of any model. As has been illustrated on this site...a unibody with thin sheet metal and lack of a typical frame...is easily totaled.

When you take out your policy ask for replacement cost rider. If not available or too expensive check with another insurer. Same goes with your homeowners policy. Think if you have 50 pair of underwear that have MSRP of 12.95 each how quick the replacement rider would earn.....

 

[Edge Haley]

I have that in my auto insurance and do pay dearly for that extra coverage, as in Boss Sound System and performance add-on but I make sure my insurance agent recognizes those extra costs...if someone simply pays a $7,000 markup on a Maverick I'd still be surprised if that markup is covered as replacement cost.

 

[Darnon]

Insurers will pay Actual Cash Value (ACV) which will typically factor Market Value, what similar mileage/equipped instances are selling for. Normally that'd be a depreciated amount but it could be appreciated and you make more.

For an insurer it's just part of their calculations in policy value. And, comparatively, paying out for mass market vehicles is cheap compared to fixing squishy humans.

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