Look up the “ACV” of your business and/or personal autos

Dear Valued Clients, 

• In 2021 alone, inflation rates in the United States averaged 7% – the largest increase in nearly 40 years.[1]

• Meanwhile in Puerto Rico, the inflation rate is expected to reach 4.5% by the end of this quarter.[2]  

• The impact of inflation rates on the cost of new cars in the U.S. was more than evident as we saw prices surge more than 11% in 2021.[3] 

• On the other hand, inflation rates on the price of used cars and trucks in the U.S. more than tripled, surging to 37% last year.[4] 

**** This new reality in used vehicles’ prices, which has also affected Puerto Rico, is important to keep in mind at the time of deciding the Actual Cash Value (“ACV”) of your vehicles in your Business Auto and/or Personal Auto policies. 

**** In total loss claims, this is of extreme importance because most insurance companies in Puerto Rico disclose the ACV in the policy and will never pay more than the value that appears for each vehicle in the policy. (*Note that this only applies to PR as most insurance companies in the US do not state the ACV in their policies.)

Therefore, Fulcro’s best advice is that all clients look up their vehicles’ ACVs in their current policies, and amend the value when necessary. If you are unsure of what the value listed in your policy is, please contact our Service Team and we will gladly assist you.

 

Best regards, 

Arturo Ortiz Rodriguez

____

SOURCES:

[1] https://www.bloomberg.com/news/articles/2022-01-12/inflation-in-u-s-registers-biggest-annual-gain-since-1982

[2] https://tradingeconomics.com/puerto-rico/inflation-cpi

[3] https://fortune.com/2021/12/13/handling-money-during-inflation-financial-planners/

[4] https://www.cbsnews.com/news/inflation-new-used-car-prices-2022/