Common Myths about Repossession Insurance
Garagekeepers Limits are High Enough
Policies that only carry $50,000 in on-hook / garagekeepers coverage may have been acceptable at some point years ago when vehicle values were lower, but when you're at a stoplight, look around and think about how many of the vehicles around you cost more than $50,000.
And when you're thinking about the cost of vehicles, don't forget items like trucks, tractor trailers, heavy equipment, boats and motor homes that are often the first to be repossessed in a struggling economy. If you're accepting lower garagekeepers limits, those lower limits could easily be exhausted after a single claim involving one of these most costly items, leaving the repossessor with reduced limits and coverage for your accounts.
One other factor to consider is the number of vehicles stored on a lot if an incident were to occur that would damage or destroy all the vehicles like a flood, hurricane or even a property fire. If any of these instances were to destroy all the vehicles on a repossessors lot or contained within their storage building and the repossessor had lower limits, there is a strong potential for the repossessor to be underinsured, resulting in greater losses for you.