Getting into a car accident is stressful enough, but an unpleasant surprise often follows. It’s the drop in resale value most vehicles take after sustaining damage—even after repairs. This loss of value is known as diminished value, and it can affect how much money you receive when trading in or selling your vehicle.
Thankfully, there is hope if you find yourself in this situation. That’s by filing a diminished value claim.
In most states, you can file a diminished value claim through the at-fault driver’s insurance company to potentially receive compensation for your vehicle’s lost value, even if they are insured with Progressive.
While navigating a Progressive diminished value claim can be challenging, with the right information and resources, success is achievable. Continue reading below for everything you need to know about this type of claim, including how the process works and steps to strengthen your diminished value claim with Progressive.
Understanding Diminished Value
It would seem like repairing a vehicle after an accident would make it as good as new. However, that’s not how most potential car buyers see it.
While a few may not be concerned with a vehicle’s condition after it’s been repaired by a body shop, most people will perceive it as worth less than a vehicle with no accident history.
Diminished value occurs when buyers are unwilling to pay the full market value of a vehicle, even after proper repairs. If the accident wasn’t your fault, you don’t have to take the hit.
A Progressive diminished value claim allows the owner of a previously damaged vehicle to recoup the loss in resale value.
Does Progressive Pay Diminished Value?
Like most insurance companies, Progressive covers diminished value claims. However, the process is not always easy or straightforward. Progressive, like other insurers, aims to minimize expenses, including payouts for diminished value.
Progressive’s company position is that a vehicle can be fully repaired to industry standards and restored to pre-loss condition. If your Progressive diminished value claim is denied, you’ll likely encounter similar wording.
The issue with their position is that “fully repaired and restored to pre-loss condition” doesn’t necessarily mean the vehicle’s pre-loss market value has been restored.
In most states, an accident victim is entitled not only to the cost of repairs but also to the difference between the vehicle’s market value before the accident and its reduced value after repairs-known as diminished value.
Where you live and where the accident took place also matters. For instance, Georgia, North Carolina, and many other states have laws that make it more straightforward to file Progressive diminished value claims.
States like North Dakota and Michigan have less favorable laws regarding diminished value. If you’re unsure about your state’s rules, contact DVCHECK for a free claim review.
How to File a Progressive Diminished Value Claim
Filing a claim with Progressive involves several steps. Increase your likelihood of having a successful claim by following this process.
Determine Your Eligibility
Just because you were in an accident doesn’t automatically mean you qualify to file a diminished value claim with Progressive Insurance. For instance, most insurance companies determine a person’s eligibility to seek diminished value based on the following:
- Whether another driver is responsible for your vehicle’s damage
- The type and extent of damage
- The vehicle’s age and mileage
- The legal environment of the state
- Prior loss history
- Type of ownership (leased vehicles are typically not eligible)
Gather Supporting Documentation
The next step is to gather information that supports your claim. This data typically includes:
- Photos of the vehicle
- Repair-related invoices and estimates
- An independent, professional diminished value appraisal
- Market comparable vehicles
Submit a Demand Letter and Your Documentation
Before Progressive can pay out for diminished value, the person seeking compensation must contact the company and provide proof. You can begin the process of filing a Progressive diminished value claim by emailing your claims adjuster.
If you’re unsure who to contact, try visiting Progressive’s website, using its app, or calling Progressive at 1-800-776-4737.
How to Handle a Response From Progressive
After preparing and submitting your claim, Progressive will review the information you’ve provided.
While the timeline may vary depending on the company’s workload, Progressive will review your claim and decide on whether to make a settlement offer or deny it.
Like other insurance companies, Progressive may sometimes offer a payout lower than what you requested. If so, negotiate with Progressive until they give you a firm offer. Negotiating won’t guarantee a higher payout, but it can improve your chances of securing better compensation.
Strengthen Your Claim With DVCHECK
Completing the diminished value claims process can feel challenging. You don’t have to do it alone.
DVCHECK has over 25 years of experience providing diminished value and total loss appraisals. Our expert appraisers provide independent, thorough, and data-driven valuations that can help strengthen your Progressive diminished value claim.
Reach out to us today for a free estimate!
