Our Diminution Insurance product protects the value of your motor vehicle in the event it suffers serious damage and is repaired.
Diminution Insurance protects your vehicle from losing value if it is seriously damaged, and despite its subsequent repair, incurs a drop in its value.
Two identical vehicles are offered for sale. One has been previously damaged in a motor accident and then repaired. You would not pay the same price for the accident damaged vehicle and would expect a price reduction for you to be induced in to purchasing it. It is this reduction in value that we insure.
You can buy Diminution Insurance that lasts up to 3 years from the date of vehicle purchase, subject to our eligibility criteria* and the age of the vehicle at the time of purchase:
*Other qualifying criteria apply and are detailed in the Diminution Insurance Policy wording.
Example shown for illustration purposes only. Each loss is assessed on a case by case basis.
Clifford James Insurance are an underwriting agency that acts for an A-rated insurer and is responsible for selling and distributing Diminution Insurance in the UK.
If you are an Insurance Company, Broker, or Car Dealership interested in distributing our innovative diminution insurance product please contact us on 0344 88 050 88 or by email to firstname.lastname@example.org
We intend to sell our Diminution Insurance policy direct to the public soon. In the meantime if you want to buy a Diminution Insurance policy, we will be happy to put you in touch with one of our distributors who will be very happy to assist.
The two insurances are extremely complementary to each other.
GAP insurance responds when there has been a total loss to an insured vehicle.
Diminution Insurance responds when the vehicle has not been written off but has sustained serious damage and despite its subsequent repair, its resale value is permanently affected by virtue of its accident history.
We recommend it to cover the potential liability to the finance company in the event the vehicle suffers a diminution in value during the lease or hire period. Most contracts will include liability for a fall in value when returning the vehicle.
The policy covers the monetary difference between the vehicle’s Pre-Accident Value and its Post-Repair Value.
Pre-Accident Value is determined by reference to a motor industry valuation guide such as Glasses Guide.
Post-Repair Value will be assessed following the vehicle’s satisfactory repair and our evaluation of the damage report. Where required an expert engineer may be appointed to carry out an inspection and make an independent assessment of its loss in value.
No. Minor or cosmetic damage can be easily repairable and will not affect the vehicle’s resale value.
To cause a diminution in value the vehicle needs to have suffered serious or significant damage that despite its repair will still impact its resale value.
Policy coverage requires the repair of the damaged vehicle and we are unable to determine a diminution loss until it has been repaired satisfactorily.
No. Insurance companies usually exclude this type of claim from their motor policies, even where cover is fully comprehensive.
In certain circumstances, yes. In the case of a non-fault accident a recovery can be made against the at-fault party or their insurers.
Clifford James have specialised in making these recoveries since 2006. However, the associated legal costs in making a recovery in this way will inevitably erode the amount of compensation ultimately received by the vehicle owner. Diminution Insurance has been designed to ensure the policyholder receives the full amount of the financial loss to the vehicle’s value, whether they are at fault or not for the damage.
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