Hunter Nelson explains that your policy value isn't what you'll actually get paid. Physical damage claims settle based on three valuation types: Replacement Cost covers a new truck, Actual Cash Value pays current market value accounting for mileage and condition, and Agreed Value is a pre-set amount both sides agree to upfront.
So the first thing with physical damage is why do you guys put a value on your policy and what does it actually mean? Are you going to get paid out that amount? The answer is no. So the way that insurance works with trucking insurance on physical damage is, well, just for one, in all trucking insur— and just all insurance in general, there are valuation types. Replacement cost is going to buy you something brand new. Actual cash value is going to buy a market value. It's going to buy you the exact same thing. Is what you get now. Same mileage, same everything, all those lines, no matter pretty much what it is. You got agreed value, which is, hey, whatever we grant for the number, you're going to get a check for pretty much that exact amount. That's kind of how it goes.
