Does Your Insurance Provide "Diminished Value?"

I just read my policy (USAA) cover to cover and it does not mention this. Maybe one of our experts on F-chat can educate us.

 

It's something new in the last 5 yrs...It's a hot topic for ins cos. Basically, it is a loss for the owner when the vehicle is in a crash and gets repaired, and inherently looses value, as it is now a REPAIRED crashed car. Georgia covers auto owners, but other stated may follow. Who wants a car that looks OK, but WAS in a crash? That's the loss the term refers to. The value of your ferrari is now lower.

 

Is this kinda like SALVAGE?

 

Mike,
not sure what salvage signifies. It sounds like "salvage" sounds a lot worse than diminished. but not an expert in this terminology.

 

Salvage is a car that is a total write off (Junk).

 

Then clearly, the intent if the word "diminished" is not the same as "salvage". I would infer that diminished is a kind of "discount" of the value of your otherwise accident free car.

 

To insure the risk of the "diminished value"? I see your point, but, man, that I cant tell you, sorry. Yeah, quantifying that would be subjective, and I dont know where ins cos are with this at this time. Have you spoken to your local agent on this? If they dont know, ask to be refered to someone at the HOME OFFICE, most of which are in Hartford. Good Luck.

 

I think salvage means that when the insurence Co. decided to total the car meaning it'll cost more to fix than what the car is worth but decided to get it fix anyway then it will have a salvage title from the DMV.

 

Diminished value entirely refers to the fact that a fully repaired car is not worth what a no-accident car is worth.

I checked into this when my week old S-Class was hit at the car wash. I was told at the time that my insurance (Progressive) did not provide for that and in AZ you cannot sue for it either. I think it goes per state statute.

 

Yeah, by state sounds legit, too bad one can not buy it and pay for it gladly though......things change, and over time I bet you will see this as a coverage. When? Hopefully by the time I buy my 77 308!!!!

 

I live in Georgia and got a check for $5k when my Ferrari was hit (yes it was fixed perfectly on top of this) and $2k for my wife's Volvo when it was hit all from diminished value.

PM me and we can talk, diminished value is something you should get.

 

if anyone would cover that, it would be chubb. Ask your agent.

 

This has nothing to do with your insurance company, it is all about the person that hit you. Furthermore it has nothing to do with the company either, it is a state by state basis. Call your agent and ask if your state is a Diminished value state, if it is then go after the insurance company of the person that hit you, it works!