Insurance Company Depreciating Mechanical Parts Involved in Accident

Is it typical for insurance companies to depreciate mechanical parts when repairing a vehicle over and above the typical insurance deductible?

I have put the claim thru my insurance because the party that hit me is a sub-standard company. The adjuster told me that he had to find out the depreciation amount since the parts were 3 years old.


Answer:


Hello,

It's bad practice, but yes, it's very common. Insurance companies are trying to pay less and less on each claim. They owe your for actual cash value, which is a depreciating amount (by definition). See our section on actual cash value.


Good Luck,
Auto Insurance Claim Advice