Arizona becomes the first state in the U.S. to approve diminished value insurance protection.
SCOTTSDALE, Ariz., May 11, 2023 /PRNewswire/ — LossPay, Inc., is proud to announce its’ newly signed agreement with Cimarron Insurance Company, Inc., and the launch of their revolutionary diminished value insurance protection program.
Diminished value is what happens to a vehicle after accident repairs because it now has an accident history; and it happens in over 70% of all reported accidents in America. Currently, there is no U.S. auto insurance company offering policyholders a comprehensive diminished value solution.
Insurance industry veteran and Director of Insurance Operations for LossPay, Lawrence “Larry” Lipman says, “A solution to the diminished value problem is long overdue and with the recent rise in auto prices, it couldn’t have come at a better time for vehicle owners.”
It is estimated that a vehicle loses between 15 – 30% of its resale value as a consequence of the perceived inferiority in quality it suffers due to the stigma of an accident history – regardless of the severity of the actual damage it sustained. “Diminished value is not an imaginary problem – the financial loses to car owners is very real”, says Lipman.
“I saw a definite need in the marketplace for diminished value insurance coverage”, said Paul Halter, CEO and President of Cimarron Insurance Company, Inc., “and was really excited to be a part of the solution.”
LossPay’s Diminished Value insurance program allows policyholders to select their desired coverage limits to avoid a one size fits all approach. Check rates at www.losspay.com. The initial rollout is in Arizona with an additional 32 states to follow within the next 18 months.
About LossPay, Inc.
Founded in 2018, LossPay, Inc., headquartered in Delaware, is an insurtech MGA that specializes in providing diminished value insurance coverage for vehicles with a residual value of $50K and higher.
About Cimarron Insurance Company, Inc.
Cimarron is a group of insurance and risk management companies that provides business owners with a wide array of specialized insurance, risk management and risk financing solutions across a broad spectrum of business classes and insurance products.
SOURCE LossPay, Inc.