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. So Merri's dealer gave her a letter - stating the car was worth 28 grand. But after the accident, only $23,000; a hit of more than $4,000. She was even more shocked when Progressive denied her claim saying she didn't prove her car sustained any diminished value. "I don't know what I need beyond a letter," said Millman.
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