An Indiana resident has filed suit in Federal Court in Indianapolis against his insurance company, alleging that, although his car was repaired after an accident, he was unable to obtain a reasonable price for it, and wants to be compensated for the "diminished value."
A report in The Indianapolis Star found that four other automobile owners in the state have filed similar claims against Allstate, State Farm and Meridian Security, seeking similar damage awards. They have sought to have the claims declared a class action.
The dispute centers on whether insurers are responsible under the terms of an automobile policy to pay for more than the repairs to a car that’s been in an accident. Consumer groups argue that they are, as a vehicle can lose up to 18 percent of its value after being repaired.
