Over MSRP and insurance question...

[RagnarKon]

Hey insurance questions—my jam—I work for an insurance company.

The answer it that it varies widely based on your state, the insurance company, and your particular coverage.

Most insurance companies will cover the assessed value of the car up until MSRP (unless state law says otherwise). There are two common scenarios in which the insurance company will cover above MSRP:

• If you have gap coverage. This coverage ensures that your auto loan is paid off if your vehicle gets wrecked—regardless of what the amount on the loan is.
• You buy collectors/exotic/classic car insurance (name of the planvaries by company). Typically this is reserved for super rare or restored classic vehicles. And they'll pay whatever the value of the car is on the open market.

There are also plans that have vehicle replacement coverage... but usually those plans will have provisions in them that say "We will not pay above MSRP for the replacement vehicle, and if the vehicle is not available we reserve the right to buy you a comparable vehicle rather than an exact replacement." So you have to be careful with the replacement plans.

Sponsored

 

[Snowdogyyz]

No one is doubting the guaranteed replacement insurance. What’s being questioned is the coverage over MSRP. I would bet money that most insurance companies will not cover anything over MSRP- especially on what will be a mass produced vehicle. If you spend $20k over sticker, that’s on you.

 

[Drex]

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?

perhaps you should contact insurance companies and explain what you want to get an answer for your pricing and plan instead of a bunch of rubes on the internet? That is if you are serious about finding out for yourself...

 

[Blitzjb]

Good luck with that....

 

[indio22]

Basically there is little good financially, in terms of paying a large ADM. Depending on the insurance plan, if a large ADM vehicle were totaled, the insurer might:

a) Replace the Bronco with another Bronco, if the cost to replace is not too far above MSRP. And if the insurer is able to accomplish that, it means Bronco value has fallen much lower from what the owner originally paid with ADM. So basically, not a smooth financial move by the owner having originally paid so much.

b) Hand the owner a check for near the MSRP value (maybe relatively small % above depending on policy), and owner would need to get some other vehicle with that money, or try to buy a Bronco at the lower cost. Either way the owner is handed much less than the large ADM.

 

[uncledoodoo]

No one is doubting the guaranteed replacement insurance. ...

I am, because they can't get one to replace it with. Do they really pay $20K over sticker to replace it? I bet there would be something about not going over MSRP.

 

[r21free]

Just tell them you want it replaced with another one...Some insurance companys (mine) say they will replace with a new one!!!

 

[Andrew_EOD]

perhaps you should contact insurance companies and explain what you want to get an answer for your pricing and plan instead of a bunch of rubes on the internet? That is if you are serious about finding out for yourself...

But then I don't get the entertainment of the forum. The "rubes" are the ones I want to hear from. I sure as hell don't really need an answer, as I won't be in that situation ever. More or less just curious. I'd bet it's a topic that sneaks up on someone in a very negative way. But, I know nothing. I have a tiny skill-set and this is not it.

 

[Snowdogyyz]

I am, because they can't get one to replace it with. Do they really pay $20K over sticker to replace it? I bet there would be something about not going over MSRP.

One of the pics above shows 110% of MSRP.

 

[uncledoodoo]

Probably from a group buy, (like me) that you can't just jump in and get instantly. So yes, I doubt you or anyone can just go buy a Bronco for MSRP at the drop of a hat (or a Bronco LOL), just because you want to for a couple of years.

 

[Andrew_EOD]

One of the pics above shows 110% of MSRP.

So $55k for a $50k vehicle... not $70k. I suppose the buyer just assumes that risk.

 

[RedHotFuzz]

A customer may be dumb enough to pay $25k over MSRP, but the insurance company certainly isn't. Kiss that $$$ goodbye. Play stupid games, win stupid prices.

Sponsored