I heard about this diminished value of a car after an accident from someone here in New Jersey. Are car insurance companies responsible for the diminished value if the policyholder files a car insurance claim?

Paul

Passaic, NJ

The discussion about diminished value has been in frenzy for years since majority of car insurance policies were mum about the subject matter whether car insurance companies are responsible for any or believed decrease in car’s value after an accident, even if the car has been fixed to its pre-accident condition. Car insurance companies fight that diminished value would not be covered, but policyholders don’t agree. And there have been a lot of court cases in which the policyholders battle with their car insurance companies about diminished value compensation.

However, the Insurance Services Office or ISO, the agency that gives insurance forms and data, has written a policy language that car insurance companies could now use in 45 states (New Jersey included) and Washington, DC that legitimately takes car insurance companies not liable for diminished value compensation in bodily damage coverage car insurance claim. In some cases, auto insurance policies work this way — the ISO puts forward sample property or casualty guidelines to state insurance departments all over the US that make it easier for car insurance companies to change and simplify their car insurance policies. A number of state insurance departments should authorize the report of the ISO prior to a car insurance company taking on any guidelines suggested by the ISO.

Are there any hidden fees that car insurance companies charge that I have to be careful about? I also need to know some tips on how I can be able to save some money for my car insurance here in Washington.

Nicholson

Tacoma, WA

You may encounter some instances wherein car insurance companies give the lowest cost for car insurance but add up to their costs in some other means. Some car insurance providers charge yearly percentage rates for monthly insurance payments of almost 40 percent. Other car insurance companies are making up for the losses on their too low cost insurance rates by charging an extra fee every time a client travels out of the country in their vehicle. In other words, you don’t have to trust the publicity of the car insurance companies and do your part in researching for the best policy that suits you from different car insurance companies.

There are a number of ways that you could be able to save on your auto insurance. First is that you could keep your no claims bonus so that this way, you may save up to 70 percent on your insurance costs after five years in case you don’t have any accidents. A lot of people discover that their insurance costs increase harshly following the first renewal period once they have lost their no claims bonus, so keep being accident-free as long as possible. Another way to save money for your car insurance in Washington is keeping your vehicle secure. You could put anti-theft gadgets and make sure that the garage where you store your vehicle is fully protected. It’s sure fire that you will have cheaper car insurance if your vehicle is less likely to be stolen.