Liberty Mutual mentions diminished value in its state claim notices for only one place: Georgia. In Georgia, when a customer submits a crash damage claim, the insurer has a duty to check for lost value. So when does Liberty Mutual pay diminished value elsewhere? Only if its driver was at fault, and only if the law of that state permits.
Liberty Mutual's Georgia Notice About Claims
A claims notice for each state is published by Liberty Mutual. An order dated December 7, 2001 came from the state's insurance commissioner, the Georgia notice says. The order instructed every carrier to look for lost value. That check applies to a customer's general claim for damage the car took in a crash.
In the notice, the order is traced back to State Farm v. Mabry. On November 28, 2001, the Supreme Court of Georgia ruled on that case. The court ruled that physical damage can reduce a car's value even after repairs have restored it.
Three other helpful points appear in that same notice. Finishing the review within 45 days is what the insurer expects. Property damage claims in Georgia carry a time limit of 4 years, the notice says. When you disagree with its handling of the claim, the notice sends you to the state's insurance office.
Making a Claim Against a Liberty Mutual Driver
If one of its customers hits you, you file a third-party claim against that driver's Liberty Mutual policy. Its online claim form includes a choice for anyone who files a claim against one of its customers. You will need the last name and policy number of the person it insures. Because Safeco now belongs to Liberty Mutual, a driver insured by Safeco follows the same route.
According to a report for the Connecticut General Assembly, most courts permit claims for lost value against the at-fault driver. It also notes that whoever claims must provide evidence of the loss. Look up your own state on our table of state rules.
Does Liberty Mutual Pay Diminished Value to Its Own Customers?
In states other than Georgia, the answer is usually no. According to the Connecticut report, your own policy usually does not cover a claim for lost value. You will not find the phrase diminished value in any other state’s notice. Many notices also say a customer may get back some out-of-pocket costs from the insurer of the other driver. How the fault splits between the two sides decides that.
So if you hold a Liberty Mutual policy and someone hit you, pursue the lost value from that driver's insurer. Also put your request to your adjuster in writing and review the loss section of your policy.
Challenging a Low Offer from Liberty Mutual
Insurers often calculate lost value with the 17c formula, J.D. Power notes. Find out which damage and mileage figures the adjuster applied. Then reply with an appraisal from a person who knows your local market. That appraisal plus a short demand letter should form the base of a Liberty Mutual diminished value claim. If the insurer stalls, take your complaint to the insurance department of your state.