TX replacement value?

[Mogman]

So how does one go about assigning a replacement value? is it just something "made up" or is there a "place" one can go.
I have two M998 Hmmwv trucks, the first one is a 1992 6.2L/3sp helmet top, with new high back seats, custom front bumper brush guard and winch mount, which is much better IMHO than anything one can buy, 12K Mile Marker hydraulic in the front, 12K electric in the rear, air lift rear bumper with factory swinging spare tire mount, 5 "new" remold tires, two offset antenna mounts and antennas, about a grand worth of Icom radios and tuners,, I have no idea how to asses a replacement value.


The second one is a 1993 with a Duramax/Allison 1000 and the original GM electronic shift on the fly transfer case, it has been meticulously re-wired from tail lights to head lights, all new electronic gauges including GPS speedometer (all stepper motor) rebuilt fuel tank, new high back seats, it now sports all new Baja radials on 24 bolt wheels, aluminum radiator and all the other necessary equipment to support the Duramax engine. with a ton of future upgrades panned.



Pics were taken during construction

 

[kendelrio]

Basically what happens is whatever replacement value you assign to it will determine your insurance price and whether or not the company will insure it.

When I insured my 5 ton, I assigned a value of $23k even though that isn't near what I paid, but that's what I would pay to replace it if a total loss occurred.

 

[USAFSS-ColdWarrior]

By your statement of "replacement value", YOU are essentially "placing the bet".

The insurance underwriters then review your application for insurance to determine if they want to "take the bet", and run the risk of ever having to "AWARD" the amount of money YOU SELECTED (the Replacement Value) to you in the event of a loss.

THEY have the option of "folding" before the game ever begins if THEY decide the risk is too high for them to play the game.

YOU are also a GAMBLER in this game. Whatever replacement value YOU declare is the most that you can EVER "win" in the event there is a CLAIM and the other player (the Insurance Company) has to "pay up" on such a justified claim.

Imagine that each "period" (typically 6-months or a year) is like being dealt another HAND in the "GAME". Each time the players receive their (Insurance) CARDS they have to ANTE-UP and put the required BET on the table. YOU NEVER get your bets back. The HOUSE (the Insurance Company) gets to keep that money. The ONLY cash YOU will ever see again is IF you vehicle suffers damage and a CLAIM must be PAID by the "OTHER PLAYER" in this GAMBLING GAME.

 

[topo]

With having it insured for replacement value if in a accident it would belong to the insurance company and taken to the towing company's yard because it is no longer yours ?

 

[TheQuaker]

So how does one go about assigning a replacement value? is it just something "made up" or is there a "place" one can go.

Simple...add up how much you already have into your truck, the initial purchase along with all the rework, repairs and upgrades you have done to it. That's the true "replacement value" of the truck. One for one. What it would cost you to duplicate the truck.

Then do a reality check on yourself and decide what your "personal replacement value" of the truck really is. Do you need to get all the money you invested in it back out of it? Are you willing to take a loss? Are you emotionally invested in the truck? Are you willing to let the insurance company haul away the wreck and start over again from scratch if it's totaled? Is it a unique model or has uncommon features that have a big value within the MV community but an unquantifiable dollar value?

Your "personal replacement value" and what your insurance company will issue on a policy for the "replacement value" will most likely be far apart (without paying through the nose for special "you set the value" collector policies and all the restrictions that go with those).

MV's are not generally a part of the automotive collector market where you get big auctions, expert appraisals, etc. to set reference valuations for buyers, sellers, investors and insurers.

The only actual comparable sales data for MV's available are what they sell for in the public gov surplus auctions or what people state they paid for their trucks in private transactions.

The public auction sales data is easily researched but, as you know, those are "fresh off the farm" prices and are not equivalent to privately owned, upgraded or modified trucks.

You have no real way to know what private sales are going for as actual transaction prices are hard to come by. Buyers tend to understate what they paid and sellers overstate what they sold for to avoid the embarrassment of over-paying or under-selling. Human nature.

Personally, I have way more money than I want to think about sunk into both of my trucks above and beyond what I initially paid for each truck itself. But, that being said, each of my trucks (M923 and a Deuce) are insured for the bare minimum I could get a policy written for...$2500 each. That is light-years away from what it would cost me to replace either of them in the condition they are now after all my time and efforts. I actually inquired if I could get a zero dollar replacement policy and they just laughed at me...

Five reasons for my decision: 1) My insurance policy for them (but still including excellent medical coverage for me in case of an accident) is very reasonable in a high-insurance cost state. 2) I never plan to make a claim on either of them regardless of the damage as undoubtedly my rates would go up. 3) I never plan to make a claim as there would be the risk of getting dropped after the claim is paid (and insurance is already hard enough to find for MV's). 4) Because there are no reference points for the insurance industry to use to estimate repair costs, parts, etc. on MV's they are likely to just total it regardless of the true amount of damage - they just would not know how to properly estimate it. 5) If the insurance totals the truck they haul the remains away and take possession of it and you will not be able to strip anything still "good" off the truck (and the parts and upgrades we add are worth a heck of a lot more on most MV's than the entire truck is).

If the worst ever happens I will tow/haul/drag whatever is left of it back to the farm, salvage anything I want to/can, say my goodbyes and send the remainder to the scrapyard and look for a replacement truck to start another adventure with. And also then have a barn full of spares and upgrades ready to bolt-on the next truck or to sell to finance the new acquisition.

 

[Mogman]

With having it insured for replacement value if in a accident it would belong to the insurance company and taken to the towing company's yard because it is no longer yours ?

The company I am looking at will allow you to keep your vehicle minus the salvage value.

 

[Eslurf]

By your statement of "replacement value", YOU are essentially "placing the bet".

The insurance underwriters then review your application for insurance to determine if they want to "take the bet", and run the risk of ever having to "AWARD" the amount of money YOU SELECTED (the Replacement Value) to you in the event of a loss.

THEY have the option of "folding" before the game ever begins if THEY decide the risk is too high for them to play the game.

YOU are also a GAMBLER in this game. Whatever replacement value YOU declare is the most that you can EVER "win" in the event there is a CLAIM and the other player (the Insurance Company) has to "pay up" on such a justified claim.

Imagine that each "period" (typically 6-months or a year) is like being dealt another HAND in the "GAME". Each time the players receive their (Insurance) CARDS they have to ANTE-UP and put the required BET on the table. YOU NEVER get your bets back. The HOUSE (the Insurance Company) gets to keep that money. The ONLY cash YOU will ever see again is IF you vehicle suffers damage and a CLAIM must be PAID by the "OTHER PLAYER" in this GAMBLING GAME.

This is an awesome way to describe insurance.

 

[USAFSS-ColdWarrior]

This is an awesome way to describe insurance.

Thank you, Sir.
It is what it is.

 

[topo]

I have liability insurance on my 1967 M52A2 and I have more money in it then it is worth if in a accident I would use it for parts on another truck or buy another truck for parts to fix it . I have two trailers I pull with it a wrecker low boy and a water trailer they are both listed on my insurance .

I would like to think I get a return on my money by driving and using it through the years .

 

[cucvmule]

Also keep any receipts attached to the vehicle. Parts, new tires, equipment, drivetrain, anything that you have spent extra on. Even labor can be assessed to the overall damage claim.

Missouri used to be a the owner of title decides what happens to the vehicle after total. The vehicle was paid off then owner could buy back for 10% cars and 15% trucks and the claim was done.

But as other repair shops were "fixing totals" and reselling because the vehicle could be resold for the value like it was never totaled the insurance companies would get the State to change the laws and they, the insurance company now own the vehicle after claim is settled. And now a salvage title is assigned to the paid off wreck. And you can buy for the salvage percentage. Missouri, but most states are pretty much the same now.

What I do is like stated before insure for a stated value for replacement, get an appraisall and pay the premium and drive with care. The biggest problem is the other driver so always be paying attention. The one that loses the most is you.