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Letter to the Editor

Insurance Companies to Pay More on Accident Claims Because of Georgia Diminished Value Class Action Suit

OAKBROOK TERRACE, Ill. -- ClaimCoach www.claimcoach.com, an online automotive insurance claims service, provided expert 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, diminished value, in automotive insurance claims. This precedent setting lawsuit may force insurance companies to pay on the diminished value of a car after an accident.

Following the verdict, State Farm, the nation'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.

"Insurers have always quietly acknowledged the existence of diminished value, but now they will have to assess it on all claims,'' said Bill Geen, President of ClaimCoach. "This case now forms the basis for dozens of other cases and should set a precedent for recognizing diminished value nationally."

The ClaimCoach system, now one of the three methods approved by Georgia's Superior Court, has been used by insurers for years and is now available to consumers involved in the claims process. The company believes it to be the most comprehensive method available to calculate diminished value.

"On our site, consumers can use their repair estimate to create a free report that shows a range of diminished value for their car," commented Geen. "Then, if they feel that they are being under compensated in their settlement, they can purchase our detailed report ($59) to present to their insurance company for consideration."

According to Geen, ClaimCoach reports help 75 to 80 percent of their customers to realize an average of $1,200 more on their car insurance settlement.

According to a ClaimCoach press release, Allstate Insurance Company also expects to pay $59 million for past Georgia claims and Progressive Insurance will pay approximately $20 million. Other suits are pending in Georgia while similar class action suits have been filed in dozens of states nationally.

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