After a car accident, one of the lesser-known aspects of the claims process is diminished value—the reduction in a car’s market value even after it’s been fully repaired.
Many car owners are surprised to find that, despite investing in repairs, their vehicle is worth less than it was before the accident. This loss in value can impact you financially if you decide to sell or trade in the vehicle, and it’s why diminished value claims exist.
But how do major insurers like Progressive and Allstate handle diminished value claims? If you’re insured by one of these companies, it’s essential to know what to expect.
Let’s take a closer look at how each insurer approaches diminished value, what factors they consider, and which might offer you a better experience.
DOWNLOAD: “Progressive vs Allstate: What is the best for Diminished Value?”.PDF
Diminished Value Claims
Before diving into the specifics of Progressive and Allstate, let’s quickly review what a diminished value claim entails.
Diminished value is the reduction in a car’s resale value after it has been in an accident, even if it’s fully repaired. Many car buyers are wary of purchasing vehicles with accident histories, which drives down the vehicle’s worth in the market.
A diminished value claim allows car owners to seek compensation from their insurance company for this loss in value.
However, not all insurance companies automatically offer diminished value compensation, and some policies may limit or restrict these claims.
This is why understanding your insurer’s policies, including whether or not they support diminished value claims, can be crucial.
How Progressive Handles Diminished Value Claims
Progressive is known for its straightforward approach to car insurance, but when it comes to diminished value claims, things can get a bit complex.
Does Progressive Cover Diminished Value?
Progressive typically does not cover diminished value claims under its standard policies. Like many insurers, Progressive considers the cost of repairs to return your car to its pre-accident condition. However, they may not acknowledge the loss in resale value that often accompanies an accident history.
That said, Progressive may cover diminished value claims under certain conditions, particularly if you are not at fault in the accident and file the claim against the at-fault driver’s insurance. In such cases, Progressive can act as an intermediary to help recover diminished value compensation from the responsible party’s insurer.
Filing a Diminished Value Claim with Progressive
If you decide to pursue a diminished value claim with Progressive, here are some steps to follow:
- Gather Documentation: Progressive will require proof of the car’s diminished value. A professional appraisal showing the reduction in market value after the accident can strengthen your claim.
- Submit an At-Fault Claim (If Applicable): If another driver is at fault, Progressive may help you file the claim against the at-fault party’s insurance.
- Be Persistent: Since Progressive doesn’t generally cover diminished value under its own policies, it’s important to follow up and push for compensation, especially if you weren’t at fault.
Pros and Cons of Diminished Value Claims with Progressive
- Pros: Potential for assistance in recovering diminished value if the other driver is at fault.
- Cons: Limited or no coverage for diminished value under standard policies; you may need to pursue the claim against another party.
How Allstate Handles Diminished Value Claims
Allstate is known for its wide range of coverage options, and they do address diminished value claims under certain conditions. However, like Progressive, Allstate’s response to diminished value claims varies depending on fault and the specifics of your policy.
Does Allstate Cover Diminished Value?
Allstate may provide compensation for diminished value claims, especially if you are not at fault in the accident. In cases where you file a claim against the at-fault driver’s insurance, Allstate can help you pursue diminished value as part of your overall claim. If the other driver is uninsured or underinsured, however, Allstate may not cover diminished value losses directly.
In some instances, Allstate policyholders have had success in negotiating diminished value claims even when the accident was their fault, but this usually depends on specific policy endorsements and state regulations.
Filing a Diminished Value Claim with Allstate
If you believe you’re entitled to a diminished value claim through Allstate, here’s the general process:
- Provide Evidence of Diminished Value: Just like with Progressive, you’ll need documentation—often an appraisal or report showing how the accident impacted your car’s value.
- Work with Your Allstate Agent: An Allstate agent may help guide you through the process, especially if the diminished value claim is being filed against an at-fault party.
- Understand Policy Limitations: Review your policy or consult your agent to determine if diminished value is covered in your situation, particularly for uninsured motorist claims.
Pros and Cons of Diminished Value Claims with Allstate
- Pros: Some support for diminished value claims, especially in at-fault accidents by other drivers; responsive customer service may assist in filing.
- Cons: Limited coverage in cases where the accident is your fault or the at-fault driver is uninsured.
Progressive vs. Allstate: Side-by-Side Comparison for Diminished Value Claims
| Feature | Progressive | Allstate |
|---|---|---|
| Diminished Value Coverage | Limited; may assist if claim is against an at-fault driver’s insurance. | Limited; may cover if another driver is at fault or under certain policy endorsements. |
| Filing Process | Requires documentation; often pursued against third-party insurance. | Involves working with an agent; requires evidence, may vary by policy specifics. |
| Customer Support | Typically requires persistence and follow-up. | Generally responsive agents; may offer guidance for filing against at-fault party. |
| Likelihood of Approval | Low for at-fault accidents under Progressive’s policy; better if another driver is at fault. | Moderate chance if not at fault; higher if policy includes endorsements for diminished value. |
| Best For | Drivers who were not at fault and want assistance filing with third-party insurance. | Drivers seeking guidance from agents and additional diminished value coverage for specific policies. |
Which Insurance Company is Better for Diminished Value Claims?
Both Progressive and Allstate offer limited support for diminished value claims, particularly if you were not at fault in the accident. However, Allstate may have a slight edge due to their agent support and flexibility with certain policy endorsements that may cover diminished value under specific conditions.
Here’s a summary to help you decide:
- Choose Progressive if you’re primarily concerned about low premiums and don’t expect comprehensive diminished value support unless the other party is at fault.
- Choose Allstate if you value agent assistance and may benefit from policy endorsements that potentially cover diminished value. Allstate may also offer better support if you plan to pursue diminished value on third-party claims.
Final Thoughts
Understanding how your insurance provider handles diminished value is essential if you want to protect your car’s worth after an accident. While neither Progressive nor Allstate offers robust diminished value coverage across the board, knowing their policies and pursuing claims strategically can help you maximize your compensation.
If you’re dealing with a diminished value situation, consider consulting with a professional appraiser to strengthen your claim and ensure you receive fair compensation. So, which insurer aligns with your needs—Progressive or Allstate?
