Gas stations used to be a place where you could fill up your tank, get your engine oil changed, and maybe even get some other car repairs done or scheduled while hearing the local news and gossip from around town.
Nowadays, gas stations are pay-at-the-pump, run inside for snacks and a drink, and get back on the road in 5 minutes.
Changes in Technology Leading to Gas Station Losses
Gas stations have gone through a lot of changes over the course of time. As American culture has gotten more fast-paced and we have changed the use of our cars from luxury and enjoyment to simply transportation, our gas stations have gone from a place of convenience to necessity, from a destination to a pit stop.
With this change in culture comes a change in technology. Gas stations now need to be equipped with pumps that can accept multiple forms of payment safely and securely without any need for interaction with a worker to ensure the swift transaction and transfer of fuel to vehicle. This means gas stations are having to improve pump technology at a break-neck pace that can become quite costly.
This all leads to gas station losses totaling in the tens of thousands for gas station owners and companies.
How Much Does a Gas Station Pump Cost?
This is an important question to ask, and one that does not have a simple answer. The easiest answer would be, “well, that largely depends on if it is being replaced (~$22,00) or upgraded (~$11,000).”
As you can see, gas station losses can be cut, nearly in half, by retrofitting older pumps with updated technology to meet current standards. However, over time, gas station technology can wear out and need repairs more often as the pump ages. Retrofitting is not always the best financial decision to cut gas station losses.
It is also important to check if your claim will allow for retrofitting rather than replacement. Otherwise, replacement may be the only way to go to cut your gas station losses as much as possible.
Insurance Claims for Gas Station Losses Adjust to Evolving Technology
The question of “how much do gas station pumps cost?” evolves some more with the rapidly changing technology.
Claims for dispensers up until 2014 were largely about being damaged by a vehicle or thieves damaging the dispenser during a robbery. Then, a shift began to see claims for equipment damaged by lightning strikes or power surges. The modified technology becoming more and more computerized led to more ways for gas station losses to occur due to events outside of human control.
The ever-evolving technology of gas pumps led to claims for gas station losses resulting in upgrades rather than replacements. Claims allowed for replacements of the same kind and quality, but the changing rules and requirements for gas pumps and dispensers meant there were no same kind and quality pumps for replacement and, therefore, claims allowed for upgrades or total replacements for new, up-to-date pumps.
Another important factor when evaluating equipment replacement cost is whether or not the claim is realistic to the cost of upgrades and repairs. Reports are showing there is an increasing number of claims being proposed with costs significantly higher than the actual cost to replace or upgrade a gas pump.
Some of these claims have merit while others don’t. It is vital to take pictures and have professional estimates of the costs of repairs. These will go a long way to covering the difference in gas station losses due to equipment such as gas pumps and dispensers.
When answering the question, “how much does a gas station pump cost?” There are many factors that can increase or decrease the total cost. What we have covered here is how to navigate whether a pump needs to be totally replaced or whether it can be upgraded to meet industry standards as well as what can qualify for a claim to cover the difference of gas station losses when it comes to replacing gas pumps, specifically.
Cut Your Costs with Gas Station Equipment Replacement
Whereas you used to be only able to cut your gas station loss if the pump itself was directly damaged, you now have options to file necessary claims due to the computerized technology being damaged or deemed too expensive or extensive to repair. Sometimes it is more cost-effective to upgrade pumps through filing a claim, but sometimes it is cost-effective to simply file for the entire unit to be replaced with something closer to industry standards. Gas station losses can be significant if you aren’t careful to evaluate the cost of equipment replacement and utilize insurance claims when possible.
