Journal of Insurance Regulation

Automobile Diminished Value Claims

Wells-Dietel, Brenda P.
Erkan-Barlow, Asligul
Walkowiak, William

First published: 05 October 2023 | https://doi.org/10.52227/26578.2023

Abstract

This paper discusses the diminished value concept in automobile insurance and examines the variances in state laws regarding first- and third-party diminished value claims. The factors that impact diminished value are identified, including certain intangible factors that cannot be measured or quantified. The existing methods employed for calculating diminished value are presented. In conclusion, insurance providers, regulators, courts, and lawmakers are invited to further consider the topic of interest and make adjustments to improve the predictability of diminished value claims.

DOI: https://doi.org/10.52227/26578.2023

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