What is Diminished Value?
When a vehicle is damaged in an accident and repaired, its resale value may be less than a comparable undamaged vehicle. That reduction — even after proper repairs — is commonly referred to as diminished value. LossPay offers protection designed to address that gap, subject to coverage availability and policy terms.
Coverage availability varies by state and is subject to underwriting eligibility, carrier approval, policy terms, conditions, and exclusions.
Illustrative Example
Illustrative only. Actual diminished value varies by vehicle, repair quality, accident severity, market conditions, and other factors. Not a guarantee of coverage or payment.
How Does Diminished Value Coverage Work?
LossPay coverage is designed to help protect vehicle owners from potential financial loss when a vehicle is damaged in a qualifying accident and repaired — because physical repairs alone may not restore full market value.
Accident Occurs
Your vehicle is involved in a qualifying accident and undergoes repairs through your primary collision or comprehensive auto insurance.
Value is Assessed
LossPay's claims specialists use a structured evaluation process considering damage severity, vehicle age, mileage, and market data to estimate diminished value. This is an assessment — actual results vary.
Claim Determination
Covered claims may qualify for payment based on the assessed diminished value, subject to policy terms, conditions, deductibles, coverage limits, and eligibility verification.
Claim outcomes and timelines vary based on documentation, repair verification, coverage terms, and individual claim circumstances. Claims are reviewed using VIN-based data, repair documentation, and policy verification. No specific outcome is guaranteed.
Important Coverage Requirement
All policyholders must maintain a primary collision and comprehensive auto insurance policy during the LossPay policy period to qualify for coverage. Failure to maintain this coverage may result in policy termination and/or denial of claims, subject to policy terms.
Why Consider Diminished Value Coverage
Diminished value is often not covered under standard first-party auto policies, and recovery may depend on state law, fault determination, and policy language. LossPay is designed to help address that gap, where available.
Financial Protection
LossPay is designed to address the gap between your vehicle's pre-accident and post-repair market value — a financial impact that standard auto insurance is typically not designed to cover. Coverage is subject to policy terms and conditions.
Beyond Standard Repairs
Collision and comprehensive auto coverage is designed to address physical damage. Diminished value is often not covered under standard first-party auto policies. LossPay is designed to help address that gap, where available and subject to eligibility.
Peace of Mind
Knowing that qualifying diminished value claims may be evaluated under your policy can reduce uncertainty about potential financial exposure after a covered repair event.
Awareness of State-Level Complexity
Diminished value recovery options can vary significantly by state. LossPay is designed to provide a structured coverage solution, subject to availability in your jurisdiction and applicable policy terms.
Check Diminished Value Coverage Options
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In most cases you can enroll in a couple of minutes by answering a few straightforward questions. There are no additional fees associated with your premium other than applicable federal, state, and local taxes. In some cases, such as vehicles with pre-existing damage, a vehicle inspection may be required ($50 fee only if you decline to enroll after inspection). Coverage is subject to underwriting eligibility and carrier approval.
You may be able to transfer your policy to another vehicle during the coverage period, subject to policy terms and underwriting review. A vehicle inspection may be required. Depending on the value of the vehicle, your policy premiums may decrease or increase accordingly.
In most cases you can enroll in a couple of minutes. Additional information may be needed to confirm coverage and issue final policy documents, which typically takes a few days. A temporary binder may be provided as evidence of coverage in the interim, pending underwriting confirmation.
LossPay requires all policyholders to maintain a primary collision and comprehensive auto insurance policy to help ensure the covered vehicle is repaired in a timely manner, allowing LossPay to evaluate potential diminished value. Failure to maintain this coverage may result in LossPay policy termination and/or denial of claims, subject to policy terms and conditions.