What is Diminished Value?
Diminished Value is what happens when a car is damaged in an accident and repaired. Its resale value may be less than that for a comparable vehicle that has not been damaged. Therefore, the damage, even though repaired, causes a reduction (loss) of the vehicle’s value.
How Does Diminished Value Coverage Work?
The primary function of our Diminished Value coverage is to protect car owners from suffering a financial loss. When a car is damaged in an accident and repaired the resale value becomes inherently lower. That loss in value is where our coverage begins.
For Example: $78,000 vehicle is damaged and repaired, that vehicle could potentially lose $23,400 in value (approx. 30%). Our Diminished Value policy could potentially pay out $23,400 depending on the circumstances and severity of the accident.
Note: All policyholders must maintain a primary Comprehensive Full-Coverage car insurance policy during the Loss of Value policy period to qualify for coverage.
How Do You Determine My Vehicles Loss of Value?
Following an accident, claims specialist use our exclusive LossPay technology which contains a proprietary formula for calculating loss of value.
It takes into consideration many factors including the severity of the damage, the vehicles pre-accident condition, age of the vehicles and mileage/KM reading at the time of accident, independent dealer analysis of market resale value along with several other key factors that help to determine a vehicles actual loss of value.
Why You Need Diminished Value Vehicle Insurance Coverage
Financial Protection Against Diminished Value Losses
After an accident, your vehicle’s value often drops, even if it’s repaired to its original condition. Traditional auto insurance typically covers repair costs but not the loss in market value. Adding LossPay ensures: Compensation for Market Value Loss: LossPay covers the difference between your vehicle’s pre-accident and post-repair market value, protecting you from financial loss.
Diminished Value Coverage Beyond Repairs
While standard auto insurance focuses on repair costs, LossPay goes a step further by addressing the hidden financial impacts of an accident: Beyond Standard Repairs: Traditional policies often fail to cover the financial hit from diminished value. LossPay fills this gap, providing a complete solution. Holistic Financial Recovery: Ensures you recover not just from the physical damage but also from the financial depreciation of your vehicle.
Peace Of Mind And Financial Security
With LossPay, you gain an extra layer of security that standard auto insurance might not offer: Reduced Financial Stress: Knowing that diminished value is covered can alleviate concerns about financial losses after an accident.
Protection Against State Laws: Modified Comparative Fault
Some states have laws prohibiting the at-fault party of an accident from receiving compensation. States like Texas, have adopted the modified comparative fault rule which stipulates that a plaintiff can seek compensation only if their level of fault is below 51%. If the plaintiff is found to be 51% or more at fault they are prohibited from any form of compensation.
FAQ
You've Got Questions - We've Got Answers!
Here are LossPay's most frequently-asked questions, for additional inquiries please reach out using one of the methods below:
833-LOSSPAY
info@losspay.com
In most cases you can enroll in a couple of minutes by answering a few straightforward questions. We may need to request additional information to fully confirm coverage and issue you with your final policy documents, but this should take only a few days. We will provide you with a temporary binder as evidence of cover in the interim. There are no other fees associated with your premium other than applicable federal, state and local taxes.
In some cases, such as vehicles with some pre-existing damage, we may require a vehicle inspection. The cost of this vehicle inspection is included in the premium. However, if you decide NOT to enroll in our program AFTER your car has been inspected by our ASE Certified Vehicle Inspection services, you will be charged a one-time $50.00 charge for the cost of the inspection.
You can transfer your policy to another car during the coverage period. You may need to pay for a vehicle inspection. Depending on the value of the car your policy premiums may decrease or increase. If there is a decrease you may be subject to a refund. If there is an increase you will need to make an additional payment.
Contact customer support at 1-833-LOSSPAY or log-in to your LossPay account.
In most cases you can enroll in a couple of minutes by answering a few straightforward questions. We may need to request additional information to fully confirm coverage and issue you with your final policy documents and declarations page, but this should take only a few days. We will provide you with a temporary binder as evidence of cover in the interim.
We require all policyholders maintain a primary Comprehensive Full-Coverage car insurance policy to ensure the covered vehicle will be repaired in a timely manner so we can determine the most accurate loss in value. This will ultimately allow us to settle claims faster and accurately.
Note: Failure to maintain this insurance will result in LossPay policy termination and/or denial of claims.
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