Constructive Total Loss

December 13, 2012

The Problem:

You have hired or “brokered†a good and reliable carrier to deliver Toyota Avalon’s for you.  While in transit one of the Avalon’s had its roof significantly damaged because of insufficient clearance at an overhead bridge.  The cost to repair the roof is $8,000 but Toyota decides to crush the $44,000 Avalon bringing about a loss of $44,00 or $36,000 more than originally thought.


Original Invoice for Avalon: $44,000
Value after being crushed: $0
Insurance Payment from brokered carrier $8,000
Shortfall: ($36,000)


So what happens:

•   The car is crushed

•   The brokered carrier does NOT have Constructive Total Loss Insurance

•   You are out the difference between the $44,000 and the $8,000 covered by the insurance which is $36,000 and that could even be a per car cost depending upon the incident.

The Solution:

To protect you and your brokered carrier from this result, The Auto Haulers Association of America has partnered with Bill Fralic Insurance Services, Inc. to provide a small fleet insurance program with Constructive Total Loss Coverage designed to adequately and economically cover carriers in this situation.

Here’s how it works:  If your brokered carrier has fewer than 10 power units and they qualify for the Constructive Total Loss Insurance they will receive a free membership into the Auto Haulers Association of America for as long as they maintain the prescribed coverage.

Here’s what you should do:

1.  Call Bill Fralic Insurance Services, Inc. at 770-640-1800 or email to verify you have Constructive Total Loss on your policy or sign up today!

2.  Be sure to notify your brokered carriers and notify them of the importance of having Constructive Total Loss and have become a member of the Auto Haulers Association of America as well.

3.  Visit our website often to stay up to date on the latest industry news and best practices.

4.  Participate in our forums section on this topic to discuss this product with other leading industry professionals.