- Diminished Value Protection
What is Diminished Value?
When a car is damaged in an accident and repaired, its resale value may be less than a comparable undamaged vehicle. That reduction — even after full repairs — is diminished value. LossPay covers that gap.
Example Scenario
Pre-Accident Value
$78,000
Post-Repair Value
$54,600
LossPay Covers
$23,400
≈ 30% of pre-accident value recovered
- How It Works
How Does Diminished Value Coverage Work?
Our coverage protects car owners from suffering a financial loss when a car is damaged in an accident and repaired — because that repair doesn’t restore full market value.
01
Accident Occurs
Your vehicle is involved in an accident and undergoes repairs through your primary auto insurance.
02
Value is Assessed
Our claims specialists use LossPay's proprietary formula considering damage severity, vehicle age, mileage, and market resale data.
03
You're Compensated
LossPay pays out the calculated diminished value — the gap between your vehicle's pre-accident and post-repair worth.
Important Requirement
All policyholders must maintain a primary Comprehensive Full-Coverage car insurance policy during the LossPay policy period to qualify for coverage. Failure to maintain this insurance will result in policy termination and/or denial of claims.
Why You Need Diminished Value Coverage
Standard auto insurance covers repair costs — not the financial depreciation your vehicle suffers. LossPay fills that gap.
Financial Protection
LossPay covers the gap between your vehicle's pre-accident and post-repair market value, protecting you from financial loss your standard insurer ignores.
Beyond Standard Repairs
Traditional policies fail to cover the financial hit from diminished value. LossPay fills this gap, providing holistic financial recovery.
Peace of Mind
Knowing that diminished value is covered alleviates concerns about financial losses after an accident — an extra layer of security.
Protection Against State Laws
Some states like Texas apply modified comparative fault rules. LossPay helps protect you regardless of complex state-level compensation restrictions.
Get Diminished Value Coverage Today
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Frequently Asked Questions
Have more questions? Reach us at:
What fees are associated with my policy?
In most cases you can enroll in a couple of minutes by answering a few straightforward questions. There are no other fees associated with your premium other than applicable federal, state and local taxes. In some cases, such as vehicles with some pre-existing damage, we may require a vehicle inspection ($50 fee only if you decline to enroll after inspection).
What if I change cars?
You can transfer your policy to another car during the coverage period. You may need to pay for a vehicle inspection. Depending on the value of the car, your policy premiums may decrease or increase accordingly.
How long does it take to get coverage for my car?
In most cases you can enroll in a couple of minutes. We may need additional information to fully confirm coverage and issue final policy documents, but this should take only a few days. We will provide you with a temporary binder as evidence of cover in the interim.
Why do I have to maintain Full-Coverage car insurance?
We require all policyholders maintain a primary Comprehensive Full-Coverage car insurance policy to ensure the covered vehicle will be repaired in a timely manner so we can determine the most accurate loss in value. Failure to maintain this insurance will result in LossPay policy termination and/or denial of claims.