Fireman’s Fund Insurance Co. has introduced new vehicle replacement coverage for commercial fleets – insuring the full replacement cost of vehicles that are total losses for up to their first three model years. In addition, a hybrid upgrade endorsement is available, enabling business’ fleets to “go green”.
Most commercial auto insurance policies pay “actual cash value” (cost of the vehicle when purchased new minus depreciation) if a commercial auto is damaged beyond repair or stolen. Instead, Fireman’s Fund is offering full replacement coverage including increased cost to replace with a new vehicle. Commercial vehicles will be replaced with the most current make and model available, including similar equipment and options,. even if a brand new model year vehicle costs more that the original cost new of the totaled vehicle. There is no depreciation reduction, but rather the increased cost to replace with a new vehicle is covered, the company said.
In addition, Fireman’s Fund now offers an upgrade to green with a hybrid endorsement. This enables policyholders to upgrade to a hybrid model (or its equivalent) during the first three model-years in the event of a total loss.
Both of these coverage enhancements apply without a deductible. The coverage also includes rental reimbursement coverage up to $3,500 in the event of a total loss.
For more information, visit www.firemansfund.com.