What is Diminished Value?
Diminished Value is what happens when a vehicle is damaged in an accident and repaired. Its resale value may be less than that for a comparable vehicle that has not been damaged. Therefore, the damage, even though repaired, causes a reduction of the vehicle’s value.
How Does Diminished Value Coverage Work?
The primary function of our diminished value coverage is to protect car owners from suffering a financial loss. When a car is damaged in an accident and repaired the resale value becomes inherently lower. That loss in value is where our coverage begins. For Example: A 5 Million JPY vehicle is damaged and repaired, that vehicle could potentially lose 1 – 1.5 Million JPY in value (approx 20-30%). Our Loss of Value policy will pay out approximately 1 – 1.5 Million JPY. No higher than a ¥10 Million pay out for one single claim.
Note: All policyholders must maintain a primary Comprehensive Full-Coverage car insurance policy during the diminished value policy period to qualify for coverage.
How Do You Determine My Vehicles Loss of Value?
Following an accident, claims specialist use our exclusive Loss Pay system, which contains a proprietary formula for calculating loss of value. It takes into consideration many factors including the severity of the damage, the vehicles pre-accident condition, age of the vehicles and mileage/KM reading at the time of accident, independent dealer analysis of market resale value along with several other key factors that help to determine a vehicle’s actual loss of value. See settlement example below:
How Much Does Diminished Value Coverage Cost?
The cost of our policy ranges approximately 0.25 to 1% of the value of your car for annual coverage. For example, if your vehicle is valued at ¥5 Million your annual policy will range between ¥12,500 – ¥50,000 annually including inspection cost and taxes.
To receive accurate pricing please contact us at quotes or call 03-6770-2902.
Car Insurance
Does NOT Cover Diminished Value
Most car owners don’t know they are not 100% covered by car insurance. You will not be compensated for your cars loss of value after an accident. Don’t lose money because your car loses value.
Car Insurance
Does NOT Cover Diminished Value
Most car owners don’t know they are not 100% covered by car insurance. You will not be compensated for your cars loss of value after an accident. Don’t lose money because your car loses value.