Utah Gov. Michael Leavitt is being asked to veto House Bill 342, which states insurers must pay a rental car company for the diminished value of a rented vehicle that is damaged.
HB 342 is unnecessary and redundant since the diminished value of a damaged vehicle already is recognized as being recoverable in Utah if that diminution is proven, said National Association of Independent Insurers (NAII) Counsel Ann Weber.
“In addition, the inclusion of diminished value in a Utah statute is not good public policy,” Weber said in a letter to Leavitt. “It is undeniable that claimants should receive the damages that they are owed; however, they should not benefit from a claim.
“Outlining in statutory form that diminished value is recoverable may encourage the artificial inflation of a claim’s value and result in an unnecessary increase in the number of cases being litigated by appearing to create a new form of recoverable damages in Utah. This potential influx of unjustified claims will not benefit Utah citizens.”
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