Limits on Diminished Value

The state Supreme Court has issued a decision that limits the amount insurers must pay to repair damaged vehicles. The case involved a State Farm policyholder who argued that the company should pay for the full restoration value of his damaged pickup truck in addition to the actual repair costs.

“The South Carolina Supreme Court has strongly reinforced the true meaning of the basic auto insurance policy,” said Alliance Director of Claims, Kirk Hansen. “Policies are intended to provide for the cost of repairs necessary to restore the vehicle to its previous operating condition and appearance.”

He noted that nearly a dozen states have now ruled against the concept of diminished value, and only Georgia has gone in the opposite direction (in the case of State Farm v. Mabry in 2001). The South Carolina ruling is significant in that the plaintiff based his case on the Georgia ruling.

Allstate pays $1,000,000

Allstate settled in California by paying $1,000,000 to the California Department of Motor Vehicles for failing to adhere to state laws and regulations regarding access and use of confidential records.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

6 Takeaways from the 2018 International Car Rental Show

Technological solutions are finally moving from reality to theory, peer-to-peer platforms are being redefined, China has the biggest room for growth, while Sixt’s U.S. aspirations have only just begun.

The Irony of Customer Service in the Digital Age

Sure, any company would jump at the chance to use technology to reduce labor costs. But it also comes with some big, red, flashing warning lights.

Market Forces Driving Car Rental in 2018

An analysis of the conference calls of Avis Budget Group and Hertz Global Holdings reveal trends and initiatives involving fleet right sizing, pricing, ancillary revenue opportunities, and renting to ride-hailing drivers.

Job Finder: Access Top Talent. Fill Key Positions.

>