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Insurance Company Depreciating Mechanical Parts Involved in Accident

Is it typical for insurance companies to depreciate mechanical parts when repairing a vehicle over and above the typical insurance deductible?

I have put the claim thru my insurance because the party that hit me is a sub-standard company. The adjuster told me that he had to find out the depreciation amount since the parts were 3 years old.



It's bad practice, but yes, it's very common. Insurance companies are trying to pay less and less on each claim. They owe your for actual cash value, which is a depreciating amount (by definition). See our section on actual cash value.

Good Luck,
Auto Insurance Claim Advice

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