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Article: Superior court ruling favors diminished value. (Massachusetts).
- Article from:
- Claims
- Article date:
- June 1, 2002
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A Massachusetts superior court recently found that auto insurers are liable for the "inherent diminished value" of wrecked cars.
The ruling is a bad move for the state's already troubled auto insurance market, according to the National Association of Independent Insurers. "Diminished value is an unproven concept that goes beyond giving claimants the damages they are owed," said Gerald L. Zimmerman, senior counsel for NAII. "The Massachusetts court could be encouraging the artificial inflation of a claim's value, resulting in unjustified claims and unnecessary ...