State Farm makes ‘diminished value’ payments

State Farm Insurance has come to a US$250mn settlement, including US$100mn for diminished value of vehicles of up to 700,000 policyholders who have filed accident claims since 1993. The suit contended that the vehicles, however well repaired, were worth less after an accident and that policyholders were entitled to reimbursement of this loss of value. Similar suits face nine other motor insurers.