What is Physical Damage Insurance for Equipment, and How Does it Work?
When customers finance or lease equipment from Altec Capital, they are required to carry physical damage insurance on their units.
Physical damage insurance covers the cost to repair or replace equipment in the event there is damage to it through some type of event such as a: Wreck, fire, flood etc.
If an Accident Occurs, How am I Compensated for My Equipment?
In the event of a total loss, most insurance companies cover equipment at the actual cash value of the truck. If your particular year model of truck is selling for $100K at the time of the accident, you would get a check for $100K.
At Altec Capital, customers have the option of obtaining physical damage insurance for the equipment they finance through either Altec Capital or their own insurance company. If you have a choice, why would you purchase physical damage insurance through us?
Benefits of Purchasing Physical Damage Insurance through Altec Capital
Under the Altec Capital insurance program, if the unit is five years old or newer, it is covered at replacement value.
If a new truck of that model is currently selling for $150K, the customer will get a check for $150K.
After five years, it goes to cash value for the equipment.
Keep the Value of your Equipment
Because we are the OEM, we offer the advantage of knowing the equipment and its value. In some cases, insurance companies don’t understand our equipment well enough to value it properly.
That can end up costing customers thousands or even tens of thousands of dollars when the insurance company doesn’t correctly determine the value.
Many companies face a common scenario: the payoff on a unit is $100K, and the insurance company says it is only worth $90K because they don’t know the equipment.
If this happens, the customer has to come out of pocket for that additional $10K. At Altec Capital, we work with the insurance company to properly calculate the value of the equipment and protect the customer.
Avoid High Accident Costs
Accidents could cost a large, self-insured customer hundreds of thousands of dollars in unexpected costs to their budget each year.
Covering that equipment with our insurance program:
- Provides you protection from big-budget hits
- Makes accident costs more predictable
- Gives you peace of mind knowing your costs are being taken care of by professionals.
Ultimately when it comes to managing your physical damage insurance, Altec Capital:
- Streamlines the claims process
- Works with the insurance company on the customer’s behalf
- Often provides a cheaper cost
- Offers a lower deductible than other insurance companies
The sole focus of Altec Capital is to create value for our customers through personalized services and solutions. With business consultants located throughout the United States, we can mobilize our resources to accelerate results and leverage our alliances and partnerships to help deliver innovative solutions to our customers.
Are you interested in seeing how Altec Capital’s physical damage insurance program can save your business money? Call (888) 408-8148, finance@altec.com, or contact your Altec Capital Account Manager for more details on the program and the benefits it can provide to you and your company.