Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Written by

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Reviewed by Jeffrey Johnson
Managing Editor & Insurance Lawyer

UPDATED: Jan 23, 2012

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Insurance Question from Lemon Cove, CA

Asked on 01/23/2012

what is depreciation? NULL

Answer given on January 26, 2012

Depreciation is a term used mostly in the insurance industry. It means the value of a property, or car, is reduced, or depreciated, due to age, wear and tear or similar. Auto insurance settles damages to a car based on the repair costs or, if the car is totaled, is based on the current actual cash value of the car. This is a depreciated value of the car. If the radio or tires are damaged or stolen from a car, and the rest of the car remains undamaged, the insurance company most likely will depreciate the value of those items based on their age or reduced value.The insurance policy usually desscribes when the insurance company will depreciate parts of a car and how it works. You can also ask your insurance agent to help explain how depreciation is applied in your claim.


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