No Formula for Diminished Value Claims in Georgia
Georgia Insurance Commissioner John Oxendine issued a directive on December 5, 2008 informing automobile insurance companies about the proper handling of diminished value claims. Insurers were orded to stop using language in its communications with the public that implies that the Georgia Insurance Department has endorsed a particular formula for determining diminution of value in physical damage automobile claims.
It really is about time that something was done about this. Insurers, including State Farm, USAA, SafeCo, Liberty Mutual, Cotton States, Allstate and GEICO, all have known for a long time, since 2001, that there was no "formula" approved by the Georgia Insurance Department, yet they continued to imply to claimants that they were just "following the formula" created by the Supreme Court and endorsed by the Insurance Commissioner in evaluating diminish value (DV) claims.