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.”
Was this article valuable?
Here are more articles you may enjoy.
Storm Austen Will Be Stronger Than Forecast Along UK Coasts 
KCC Says Isaias Insured Losses to Be $3 Billion; AM Best Calls Storm an Earnings Event 
Home Insurance Tops Property Taxes in Squeeze for US Households 
EU Cyber Agency Warns Websites May Go Dark as PHP Prepares Critical Fix 
