Once a valid auto insurance policy has been purchased, there are still a number of issues that can arise which all road users should be aware of…
4 – Diminished Value Claims
The concept of diminished value works on the principle that any vehicle involved in a road traffic accident will be worth significantly less once repairs on it have been carried out. On first party claims where you have claimed on your own policy, it is highly unlikely that you will be allowed to apply for diminished value reimbursement. At the present time, there are 45 US states that have been subjected to a diminution in value exclusion and these have been approved by local auto insurance regulators.
However, you will be able to make a third party claim if you have been involved in an accident where another driver was found to be at fault. Entitlements can vary greatly but road users living in Tort states are more likely to receive reimbursement.
5 – Stacked Coverage
In some states, uninsured and underinsured auto insurance coverage can be stacked together and this allows road users to make more than one claim during any single validity period. This will usually unfold over two scenarios. Firstly, you can collect payment for damages to the limits of multiple vehicles if they are all covered under the same policy. Secondly, you will also be able to claim on multiple policies even if they are underwritten by different auto insurance companies. Road users will need to check the terms and conditions of their auto insurance policies to see if stacked coverage is permitted.