Hey Everyone,
Thought I would (with Matt’s encouragement) post some lessons learned about insurance and offroading in Michigan after I totalled my vehicle after I caught air and nosed in at Silver Lake. Notably, I had a good friend in the vehicle with me who was able to be a witness and by sheer coincidence is also my insurance agent.
- When you are operating a state highway licensed vehicle, with a state ORV sticker on a designated trail, number forest road, seasonal unmaintained county road, or a state ORV park like Silver Lake, you are covered if you are in an accident with another vehicle or if you are at fault and hit something (the dune like I did, or a tree, etc.). If you are on a named road on Drummond you are covered. If you are on an undesignated trail or an illegal off roading location (private property) or a two-track or snowmobile route that is unnumbered, or that power line trail you like — in those cases you are not covered. My company is Hanover Citiziens and that’s how they do it if you have Broad Form Collision. Check with your policy and coverage levels obviously.
- Totalling the vehicle — In Michigan by statute, a vehicle is totaled by the insurance company when the repair cost plus salvage cost is greater than 75% of the Actual Cash Value (ACV) of the vehicle IMMEDIATELY PRIOR TO THE ACCIDENT OCCURRING. The ACV is determined by a CarFax type of comparison report that looks for similar cars with similar options and model year with mileage in range — mileage and condition variant can adjust value up or down. If you are an off-roader, assume you will be adjusted down since scratches, dents, previous damage, fender flare loss, etc, will all drag down your value. I had over average mileage on my 23 Bronco Raptor and the ACV came in at $56K with Comparables and adjustment down for mileage (63K miles — way above average for a 23 Bronco) and condition (rough even though I took good care of it, the undercarriage, scratches and other things went against me). My cost for repair for the frame and front end damage was $37K. The salvage value was in the low twenties. So 37+22=59>75% of $56K automatic total. This is by MIchigan law not the discretion of the insurance company.
- ACV and repair calculations DO NOT include the value of aftermarket mods or upgrades — PPF, winches, bumpers, radios, racks, engine upgrades, ProCal tunes, wheels, tires, storage — none of that increased the ACV, payment to you, or repair costs. UNLESS YOU HAVE AN AFTERMARKET RIDER on your insurance policy. I paid a little over $400 a year for a $20K rider. Now, when I did that, and when I replaced my Bronco with a new Bronco Raptor, I have to document in a spreadsheet all the items I added. My spreadsheet has date of mod, material cost, labor cost, description, a link to the manufacturer website, receipts from the shop that did the work, or receipts from the purchase for something I did. And pictures of the vehicle with the item installed. This does not count gear like recovery gear that are the contents of the vehicle, that is covered under comprehensive or the contents rider on your homeowners or renters insurance. With that rider in place and documentation, I received an additional $20K check from my insurance company on top of the ACV of the vehicle.
- Note that the ACV payment will include the additional rider amount as documented in the loss, but if there is still a loan on the vehicle the will resolve the lien FIRST before cutting a check to you.
- I was allowed to take gear off my old vehicle and move it to my new Bronco. I was also able to pull aftermarket add ons off for me to sell or keep. The insurance companies don’t want to mess with trying to value the aftermarket components and they can’t easily assess build quality, installation risk, etc. so I found them easy to work with in what I could keep from the old vehicle.
- Keep good records! Every add on, bolt on, mod, etc, to your Bronco should be in a file where you can easily access this. And may I add, having that information to give to a new owner is priceless. I was able to get details from the previous owner about the installed stereo in my new Bronco that was REALLY helpful as I was looking to make change and make the vehicle mine. But having it for insurance purposes could make the difference between saying goodbye to your old friend and being able to get a new one.
- Salvage value — determined by a buyer and you do have a right to buy the vehicle on salvage and repair it yourself and drive it is it passes a roadworthiness inspection. Now this next part varies by company — If you buy it on Salvage, they will give you the ACV minus salvage value (which is negotiated — you don’t have to take their first offer) and you get the vehicle but it will always carry a compromised title. Flagged as a former salvage, you may or may not be able to insure the vehicle for Collision or anything past PLPD. It will show compromised title from the state and vehicle searches. When I totalled the salvage cost plus repair cost it was actually more cash out of pocket to recover the old Cactus Grey and repair it than it was to find a lower mileage great condition Bronco Raptor.
