Bronco Nation

Insurance and dealer mark ups

ejaffe
Feb 14, 2022

Rank II

Feb 14, 2022

Just thinking about the Bronco that sunk in the ice, dealer mark-ups and insurance. I have to believe that if you total your Bronco, your insurance company will pay you what it is worth (not what you paid). Even if they pay for full replacement, I would think it is for the MSRP, not your mark-up. Someone provide some intelligence to what I am thinking but if I am correct, if you total your Bronco not only will you have to get back in line for a new one, but the money you receive may not cover what you paid for it in the first place and you will still be paying off the totaled vehicle. Just something to think about when you consider paying mark-ups or negotiating your insurance policy with your carrier.
Deano Bronc, TK1215
Last edited by a moderator: Feb 14, 2022

Rank VI

Feb 14, 2022

#1
Insurance is state-specific, so the way it works in NJ will be different than in CA, and different in WA.

However, generally, the insurance company owes actual cash value (ACV), unless you have a stated value policy (which is atypical). So, the value is what a person would expect to pay with a cash offer. MSRP is irrelevant. How man would it take, if you have a fistful of $100 bills, to buy a replacement (used obviously). If the market is $10k over MSRP for a used Bronco, that is the actual cash value. If the market wouldn't pay more than $10k less than MSRP, that's actual cash value.
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RagnarKon

Rank II

Feb 14, 2022

#2
AcesandEights
Insurance is state-specific, so the way it works in NJ will be different than in CA, and different in WA.

However, generally, the insurance company owes actual cash value (ACV), unless you have a stated value policy (which is atypical). So, the value is what a person would expect to pay with a cash offer. MSRP is irrelevant. How man would it take, if you have a fistful of $100 bills, to buy a replacement (used obviously). If the market is $10k over MSRP for a used Bronco, that is the actual cash value. If the market wouldn't pay more than $10k less than MSRP, that's actual cash value.
Good to know. I am not sure NJ plays by those rules but definitely worth checking out.

Rank II

Feb 14, 2022

#3
If you are from NJ, here are the rules. Similar to to what AcesandEights noted above. https://www.state.nj.us/dobi/division_consumers/insurance/11_3_10.pdf I would say if you are not from NJ and are looking to pay a big mark up, consider doing this homework first.

Burrito Connoisseur

Feb 14, 2022

#4
Yeah you're on the right track for sure. And as @AcesandEights said, it'll depends entirely on the insurance plan and the state.

Most plans will pay you ACV or fair market value up until MSRP. Some plans will pay you market value even if the value is beyond MSRP—although in my experience that is only common for "classic/luxury vehicle" insurance plans, or if the state requires it by law. In my current state, insurers are required to pay out ACV and there is no cap on that ACV. Back when I lived in Arizona, there was no ACV requirement. Super nice because it meant I could insure my daily driver for $18/mo, but if my daily driver got damaged there was basically no payout from the insurance company.
2022 4dr Badlands, 2.3L Manual, Mid pkg
YouTube: youtube.com/@ragnarkon
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Rank V

Feb 14, 2022

#5
For example in Minnesota, they have to do research on the current market sales for similar vehicles. They then weigh those based on recent and how close to your vehicle the sold item was. They'll offer the average of those numbers. I assume if there are no sales for a similar vehicle around you they would take new car sales amounts.
2D Base Mansquatch: Ord 11-24-2021; VIN 3-16-2022; Schd 5/9/22; Sticker 5/4/22; Modules 5/10/22;Built 5/11/22;Shipt 5/12/22;Delv 5/24/22
Moderator

Life is a Highway

Feb 14, 2022

#6
ejaffe
Just thinking about the Bronco that sunk in the ice, dealer mark-ups and insurance. I have to believe that if you total your Bronco, your insurance company will pay you what it is worth (not what you paid). Even if they pay for full replacement, I would think it is for the MSRP, not your mark-up. Someone provide some intelligence to what I am thinking but if I am correct, if you total your Bronco not only will you have to get back in line for a new one, but the money you receive may not cover what you paid for it in the first place and you will still be paying off the totaled vehicle. Just something to think about when you consider paying mark-ups or negotiating your insurance policy with your carrier.
Great post
Moderator

Life is a Highway

Feb 14, 2022

#7
Great thread
Jakob1972

Gladesmen

Feb 14, 2022

#8
I would definitely get the Gap insurance if I had to pay over MSRP for a vehicle. My current vehicle I was lucky I got a year ago right before this craziness and paid $10k less than MSRP. Can’t wait to see those prices again.
Bronco Nation 1100. Everglades, Desert Sand
Res: 7/30/20 ordered 1/22/21 reorder 10/15/21 changed to Everglades 3/9/22 schedule 8/29/22 bumped to 9/5; 9/7/22 blend, 9/9 Mods, 9/26/22 completed, 10/7 shipped, 11/3/22 delivery
Sdakotabronco, TK1215

Rank VI

Feb 14, 2022

#9
Would insurance cover ANYTHING if you ignore a Road Closed sign? I’d be shocked if that was the case.
Badlands | Sasquatch | Cyber Orange | 2.7L | Lux | Soft Top

Rank VI

Feb 14, 2022

#10
Of course insurance would cover it. That's the point of insurance, negligence and liability.
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