"He said 'is this your car?' and I said yes, and he said, 'well I just hit it,'" recalled Millman. His insurance, Progressive, paid for the repairs to her car, fully fixing dents and scrapes along the side and bumper. The problem? Your car is ultimately repaired, but you still lose money. That's because a car's resale value takes a dent when it's hit. It's a little-known insurance payout called 'diminished value.' It amounts to compensation for the loss of your car's re-sale value, after someone else hits it. Merri's husband received a $2,000 diminished value claim recently. But when she asked Progressive Insurance to pay her cars diminished value? She says she was told Progressive "doesn't do that." But, that's wrong. Diminished value is allowed in New Jersey, New York and Connecticut.
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