Greetings from your agents at Chesterfield Insurers! Summer has arrived! We all hope you are enjoying your time with family and maybe a little time off from work duties!

I know you have all witnessed the unprecedented increase in the cost of acquiring vehicles since COVID. I have been volunteering since 1981 and I have never seen increases so dramatic and so fast in all my years of serving. The “metal shortages” witnessed back at the turn of the century brought some increases, but nothing as drastic as what we have seen in the last year and a half.

Unfortunately, industry experts do not see any retreat in pricing in the future. In fact, with new emissions standards coming in just a few years prices will only continue to rise. The situation is also affecting the used apparatus market, driving those prices up as well.

This brings up the reason for this column. How long has it been since you have looked at the value you have your vehicles insured for. As you know your policy has an “agreed value” coverage for your emergency vehicles. This means you can insure a twenty-year-old truck that may have a cash value of $25,000 for the full cost of replacement. This means you have enough in the event of a total loss to buy something of higher value than what the cash value of your truck is.

I would speculate that based on current cost new, you may have values too low to even approach replacing a truck with something new. In fact, because the cost of used vehicles has also skyrocketed, you may not even have enough to purchase a good used replacement. I would encourage you to reach out to your agent. Have them provide a list of your current values. Then, review them and make any necessary changes. Remember, you can insure to replace with something new, you can insure for a value to purchase something used or you can just insure for cash value. The choice is yours.

I know the price of keeping up means higher premiums. However, you do not want to be caught short if you have a total loss. Paying slightly more for premiums may be easier than going to your operating budget should you have a total loss. We are here to help. Reach out for more information! Have a safe Summer