When an automobile is damaged in an accident and then repaired, the resale value may be less than a comparable automobile that has not been damaged. In other words, the damage results in a reduction or “diminution” in the resale value of the automobile. An insured’s claim for this reduction in value may be made…
One of the most heavily contested types of subrogation cases we encounter involves recovery of the reasonable cost of repairs performed in-house by a commercial fleet, trucking company, auto dealership, or rental car company whose vehicle has been damaged due to the negligence of a negligent third party. The liability carrier for the tortfeasor frequently…
Insurance policy deductibles and subrogation make strange bedfellows. Most property and automobile insurance policies require that the insured pay a deductible—an out-of-pocket payment the insured is required to pay toward a covered loss before the insurance company kicks in with its own claim dollars. Some policies allow the insured to select a deductible, with the…
Most insurance claims professionals understand that, as opposed to uninsured motorist (UM) coverage, which pays damages to an insured who is involved in an accident with an uninsured driver, underinsured motorist (UIM) coverage is automobile insurance coverage which protects an insured involved in an accident with a tortfeasor who doesn’t have liability limits sufficient to…
Automobile rentals is a $29 billion industry and constitutes a significant portion of the transport sector in America. In 2018, there were 2,212,925 rental vehicles on U.S roads. There are six million auto accidents in the U.S. every year, and rental cars are involved in a significant portion of those accidents. To make matters worse,…
Certain 2011 to 2021 Kia and 2015 to 2021 Hyundai vehicles were designed, manufactured, and sold without an electronic immobilizer found in over 95% of other vehicles. As such, these automobiles are prone to theft. Thieves typically break a back window to avoid alarms, expose the steering column, and fit a USB-A plug into the…
According to the Governors Highway Safety Association (GHSA), each day last year, twenty people were struck and killed by cars. Nearly 8,000 pedestrians were killed by vehicles in 2021 – an increase of 11.5%. This represents both an alarming public safety trend and a growing concern for the insurance industry. A 2018 Governors Highway Safety…
Connelly v. Main St. Am. Group, 2023 WL 152540 (S.C. 2023) South Carolina’s Exclusive Remedy Rule has prevented an employee from collecting $350,000 in uninsured motorist benefits for injuries she sustained in an automobile accident she was in while a passenger in a vehicle owned and driven by a co-employee. Stephany Connelly and a co-worker…
Earlier in my career I handled a subrogation case involving a brand-new vehicle which was lightly tapped from the rear by a careless driver. The damage to the vehicle was very minimal, yet the vehicle was declared a total loss by my client because its frame had been “jiggled” and the cost to repair the…
Grothe v. Kushnivich, 521 P.3d 228 (Wash. App. 2022) One by one, states have begun to recognize a vehicle owner’s third-party claim for residual diminished value damage, or “stigma damage”, which is the loss of value of an automobile that remains after it is completely and professionally repaired. It is the loss of value that…