Coverage Spotlight: Is your entity covered for a high-value vehicle loss?

Scenario – One of your entity’s high-value vehicles is totaled. How much will it cost you to replace it in the current environment? While your entity may have insurance, does your entity have coverage?

The past 12 months have seen record inflation throughout the United States, with the most significant increases in fuel and airfare. However, the costs for new and used automobiles, as well as for parts and services, have also increased. Even if vehicles are not totaled, the time they may be out of commission waiting for parts or labor continues to increase. This, while the costs for used and new vehicles have increased between 12 and 16 percent, are straining already tight member budgets.

The cost to replace a high-value vehicle, however, should not keep VRSA members up at night.  VRSA’s Automobile Physical Damage Coverage provides for new vehicle replacement.

The coverage is available for vehicles less than five years old, and generally valued at more than $75,000. Benefits include covering the cost to replace a covered vehicle with a comparable vehicle, and avoiding the financial strain of replacing high-dollar vehicles, especially in today’s inflationary environment.

For vehicles between five and 15 years old, VRSA will cover the cost to replace them with “like kind and quality.” Vehicles older than 15 years will receive actual cash value cost.

“VRSA is committed to providing stable, dependable coverages our members can rely on,” said VRSA Managing Director Marcus Hensel. “Beyond that, we are also committed to easing our members’ worries through coverages like this – that protect the valuable assets that our members need to serve their communities each and every day.”

For more information on VRSA’s New Vehicle Replacement Coverage, contact your member services representative at: 800-963-6800.