The Americans are famed worldwide for their ability to squeeze every last
cent out of insurance companies and now they've found a new angle which will
cost the industry many more millions.
ClaimCoach, an online automotive insurance claims service, has provided
testimony in a Georgia suit forcing State Farm Insurance to pay on a vehicle's
loss in value after an accident regardless of the quality of repair. They argue
that even with a proper repair the car is perceived as being worth less.
Following the verdict, State Farm, the USA's largest insurer, agreed to
assess all future claims for diminished value and to pay $100 million covering
first party claims dating back to December 1993. They project to pay another
$100 million over the next six years beginning on December 1, 2001.