If you had to guess where most damage to cars occurs, would you say on the road or in the parking lot? If you picked the parking lot, you’d be correct, and a recent study by Advocate Auto Consultants shows that 1.26 million accidents take place in parking lots each year. To no one’s surprise, parking lot crashes increase by 20% during the Christmas season, which is one more justification for on-line shopping.
While parking lot crashes account for only 20% of the total accidents reported each year, they account for the bulk of the accident damage. Autoevolution cites the purpose of the study by Advocate Auto Consultants as informational, to advise consumers that they may be entitled to an additional insurance company payment for “diminished value”. Diminished value applies when a newer car is involved in an accident requiring more than $2,500 to repair, and auto insurance companies may not tell policy holders about it. Per Tom Coletta, Advocate Auto Consultants CEO, “They (policy holders) are eligible to reclaim the Diminished Value that the insurance companies often choose not to inform the victims about. During the busy holiday season, more people are impacted by Diminished Value and Americans just can’t afford to lose this money.”
If you drive a newer car and have an accident, be sure to ask your insurance company if a Diminished Value clause applies to your situation.