Over MSRP and insurance question...

Andrew_EOD

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So, I'm all for capitalism... if you want to spend $25k for a someday standard vehicle in order to be first. Awesome. But do these people tend to pay more up front, or even all in cash? Either way, what happens when you take the vehicle you spent $75k on and then god forbid something happens. Something bad. It's now totaled. Nothing to be done for it. (I'm actually curious when the first '21 Bronco will be wrecked or totaled) I know there is always that initial loss of value right off the lot... but with an OVER MSRP... aren't you just super screwed? No insurance company will pay for that right?! They'll give you $45k and you'll like it, right?
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Squatch Bronc

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Depending on your insurance company, new vehicles that are a total loss, usually have a replacement guarantee. This means, the insurance company will pay whatever it takes to replace your new Bronco.
 

JDS

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Yes their actuarial tables will depreciate the value of the vehicle from msrp. You have almost 0% chance of getting adm back
 

Mickey21

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So, I'm all for capitalism... if you want to spend $25k for a someday standard vehicle in order to be first. Awesome. But do these people tend to pay more up front, or even all in cash? Either way, what happens when you take the vehicle you spent $75k on and then god forbid something happens. Something bad. It's now totaled. Nothing to be done for it. (I'm actually curious when the first '21 Bronco will be wrecked or totaled) I know there is always that initial loss of value right off the lot... but with an OVER MSRP... aren't you just super screwed? No insurance company will pay for that right?! They'll give you $45k and you'll like it, right?
There was already wrecks with Broncos involved. In many case it all depends, what I would suggest as a catch all answer is talk with your insurance provider and if they wont give you those details and scenarios in some writing (make sure they mention policy specifics of coverage), that you talk with a provider that will. In so many case with this specific question, "it all depends" comes to mind on how YOU specifically organized, paid for, and use the vehicle.
First Known Accident of a Bronco for me.png
 

PavementQueen

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In my experience(in Michigan with the highest insurance in the nation), you can pay a little extra for loan payoff or vehicle replacement in the event of an accident. That said, I'm sure there's a price difference between a common vehicle and a vehicle with limited production runs or vehicles no longer manufactured.
 

palley6

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Really depends on your insurance company. Standard policy typically only pays the ACV (actual cash value) which factors in depreciation, some companies offer replacement cost as a potential upcharge. My concern is considering the scarcity of parts/replacements/over-adjusted purchase price, insurance companies may decide to restrict these policies to ACV only as a result.

I used to sell insurance and at the time our uninsurable vehicles (think exotic imports, classic cars,etc) included a standout -- the Isuzu Trooper. The reason why is the inability to purchase replacement parts so they figured an accident would more than likely total it since the cost required to indemnify would almost guarantee 100% ACV. Its a tricky business, even trickier in 2021 I'm afraid but I've been out of the game for a few years so I could be mistaken.
 

palley6

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In my experience(in Michigan with the highest insurance in the nation), you can pay a little extra for loan payoff or vehicle replacement in the event of an accident. That said, I'm sure there's a price difference between a common vehicle and a vehicle with limited production runs or vehicles no longer manufactured.
Michigan has some wack insurance regulations. Tort/no-fault is such a scam, take it from a Floridian who also is required to deal with this BS as well.

Funny story -- I once quoted a first time driver in Brooklyn. This kid was at the dealership buying a used Toyota Camry, only needed basic coverage to drive off the lot. Quote came out to $27,000 a year. Sad to say, he didnt take it.
 

GoTigersGoBronco

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You can buy stated value or agreed value insurance on rare/classic cars. You have an annual mileage limitation and daily drivers are not allowed. It’s usually fairly affordable, even up to $100k in coverage.
 

Monster1926

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For the people that don’t know, a bank will not lend over what the Broncos MSRP is. Typically if a dealer can prove “modifications” increased value they might. Think the Tuscany/rocky ridge trucks dealers have. So the people paying ADM are either paying cash or putting a large deposit down to finance the bronco at MSRP. Now they could put agreed value on their policy, if something were to happen but you pay extra for it and the insurance has to agree it’s worth X. I’m pretty sure GAP or regular insurance will not cover anything over MSRP.
 

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Our insurance has new car replacement. If it gets totaled They will replace it with one model year newer. So if the 21 bronco gets totaled we could order a similar specced 22 bronco and they would cover it.
 

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Depending on your insurance company, new vehicles that are a total loss, usually have a replacement guarantee. This means, the insurance company will pay whatever it takes to replace your new Bronco.
The insurance carrier will not pay over MSRP to replace a car that someone overpaid for.
 

uncledoodoo

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Our insurance has new car replacement. If it gets totaled They will replace it with one model year newer. So if the 21 bronco gets totaled we could order a similar specced 22 bronco and they would cover it.
I'd bet they wouldn't pay over MSRP for it though, in which case you're getting your replacement Bronco in 2 - 4 years.
 

BlazinGTO

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In always thought car replacement insurance was that they pay you full original value of the vehicle. They don't actually replace it for you. Finding a replacement is on the owner.

In that case, you would get msrp back on the Bronco and that's all the insurance would do. You need to find another bronco. What the new vehicle costs is no concern to the insurance company. You don't even need to get the same vehicle.
 

Squatch Bronc

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The insurance carrier will not pay over MSRP to replace a car that someone overpaid for.
Once again, it depends o
The insurance carrier will not pay over MSRP to replace a car that someone overpaid for.
Once again, it depends on the insurance company you choose, and the coverage you choose. I have replacement guarantee coverage.
 
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