Got into an accident two weeks back. Police report clearly says the other driver was at fault. I have full coverage, so I took my car to the shop, and my insurance agent just called me with the breakdown. They’re covering about $5.3k out of the $7k total repair cost, leaving me with the rest. They deducted my $500 deductible plus 30% for ‘parts depreciation.’
Is this even legal? Why should I have to pay for depreciation if the car wasn’t totaled? I’m in Puerto Rico, if that matters for how these rules work.
Frost said:
Can you tell us which parts are involved? If it’s things like tires, those wear out over time and usually have depreciation charges applied.
It’s the doors, a tire, and the suspension that are all getting replaced.
@Frost
I could understand for the suspension and tires, but yeah, the doors thing threw me off. The agent wouldn’t even explain how he calculated the depreciation rate. I’m honestly fed up with how these insurance companies operate.
Depreciation is common for some parts in most states. For example, if you got a new engine, they’d charge for the upgrade. But without details, it’s hard to say why you’re getting a 30% depreciation charge.
@Casey
There was a recent class-action lawsuit here against insurance companies for this kind of thing. The ruling was supposed to protect customers, but my insurer’s still doing it. I’m wondering why it’s a 30% charge instead of something like 20%. I’ll be speaking with the adjuster’s supervisor tomorrow to ask about it. They listed $954 for depreciation.
@Casey
Even though the police report blames the other driver, my insurance says that since it happened at a faulty stoplight, they’re treating it like both drivers are partially at fault. I was T-boned, though.
Not sure anyone here will have enough knowledge on Puerto Rico auto insurance rules to be much help, but maybe someone else has dealt with a similar situation.