LossPay
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| Industry | Insurance & Consumer Services |
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| Founded |
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| Headquarters | Lewes, Delaware |
| Products |
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| Website | www |
LossPay, Inc. is an insurtech managing general agent (MGA) that specializes in providing diminished value insurance coverage for vehicles with a residual value of $50,000 and higher. Founded in 2019 and headquartered in Delaware, LossPay aims to address the financial loss experienced by car owners due to the diminished value following accident repairs.[1]
History
LossPay was founded in 2019 and officially incorporated in 2020 in Lewes, Delaware. LossPay was created following a car accident involving its founder, which happened on July 1, 2018 in Tokyo Japan. This event highlighted the need for diminished value coverage.[2]
LossPay’s journey began with the purchase of a rare 2017 Lamborghini Huracan Avio valued at $330,000. Unfortunately, the day after taking possession of the vehicle it was involved in a rear-end collision by a taxi cab on July 2, 2018. Although the vehicle had a Comprehensive Full-Coverage insurance policy, it would soon be discovered that the policy did not cover the diminished value it was guaranteed to suffer as a result of the accident.
Diminished value refers to the loss in a vehicle's resale value after it has been damaged and repaired. In this case, the estimated diminished value would be close to approximately $100,000, or around 30% of the car's total market value. Subsequently, the vehicle sold for approximately $243,000, and experienced a substantial loss of $87,000 in resale value.
Dissatisfied with the lack of options for diminished value coverage offered by insurance companies in Japan, the founder embarked on a mission to find a solution. He reached out to various insurance carriers in Japan but was met with the same response - none of them offered the coverage he sought. He then turned his attention to the United States in the hopes that an American carrier might be willing to underwrite such a risk. However, his efforts were in vain, as no known insurer anywhere in the world provided diminished value coverage.
Driven by the belief that there should be a solution to this problem, he took it upon himself to develop a solution. Over the course of nearly five years, he and his team worked diligently to create and launch LossPay, Inc. The company aimed to fill the gap in the insurance market by offering protection to vehicle owners with coverage specifically designed to address diminished value.
On May 1, 2023, LossPay achieved a significant milestone when its program received approval as an admitted insurance product from the Arizona Department of Insurance. This achievement marked LossPay as America's first-ever diminished value insurer. With this regulatory approval in place, LossPay could begin offering its specialized coverage to customers in Arizona, with the state of Texas soon to follow.
Looking ahead, LossPay has plans to expand its coverage to 33 additional states. The company intends to submit its program for approval within the next 12 to 18 months. By doing so, LossPay aims to protect car owners across the United States from the financial impact of diminished value resulting from accident repairs.[3]
Overview
LossPay specializes in diminished value insurance, aiming to address the financial challenges faced by car owners when their vehicles experience a loss in resale value after being involved in an accident. In 2023, the company signed an agreement to introduce the first-ever diminished value insurance in the United States.
In contrast to conventional auto insurance policies, which primarily cover repairs, property damage, and personal injury, LossPay understood the need for a specialized insurance product to address the diminished value that vehicles experience. Their comprehensive coverage offers car owners the opportunity to avoid unpredictable and expensive legal proceedings and receive fair compensation for the diminished value of their vehicles within a reasonable time frame.[4]
LossPay's coverage is available for vehicles valued at $50,000 and higher, with a policyholders minimum age requirement of 30 years of age. The company is continuously expanding its coverage availability, with insurance services currently being provided in Arizona and Texas. Moreover, LossPay offers flexible payment options, allowing policyholders to choose from monthly, quarterly, semi-annual, or annual plans to conveniently manage their insurance premiums.
The company also has a dedicated HEROS discount program for the men and women in uniform. Specifically for current and retired U.S. Armed Forces members and currently active first responders, including: police officers, fire fighters, paramedics and EMTs.
LossPay has combined cutting-edge algorithms with exceptional customer service to create a seamless online platform for purchasing and managing insurance policies. With its user-friendly platform, customers can effortlessly file and monitor claims online, guaranteeing transparency and ease of access throughout every step of the claims process.[5]
Coverages
Diminished Value Coverage:
LossPay, Inc. provides premier diminished value insurance coverage, protecting car owners from the loss of their vehicle's resale value after it has been repaired following an accident. For instance, if a $78,000 vehicle is damaged and repaired, it could potentially lose around 30% of its value, which amounts to $23,400. Depending on the accident's severity and circumstances, LossPay’s diminished value policy can potentially provide a payout of up to $23,400.[6]
Accelerated Total Loss Coverage:
LossPay offers an additional coverage option called Accelerated Total Loss Coverage, which enables car owners to replace a damaged vehicle in specific situations.[7] Typically, insurance companies only declare a vehicle a total loss if the damage exceeds 50% of its pre-accident value. However, LossPay’s Accelerated Total Loss coverage provides options when the damage falls between 10% and 49% or if the damage is 50% or higher but the insurance company refuses to declare it a total loss. This coverage ensures that owners of select cars have the necessary protection to replace their vehicles if the repair costs or lost value surpass a certain threshold.[8] This policy requires pre-approval as only specific vehicle make and model types are accepted.
In the media
References
- ↑ Daily, Silicon Valley (30 May 2023). "Introducing LossPay: Shaking Up the Car Insurance World with Diminished Value Insurance Coverage". Daily Silicon Valley. Retrieved 8 June 2023.
- ↑ Selligence, Pre-Sales Intelligence (19 January 2023). "Selligence - Pre-Sales Intelligence to Optimise Your Activity". www.selligence.com. Retrieved 8 June 2023.
- ↑ losspay, insurance (19 January 2023). "losspay-diminished-value-protection-is-defying-the-myth-of-full-coverage-insurance". einnews. Retrieved 8 June 2023.
- ↑ LossPay, insurance (1 June 2023). "LossPay: A Game-Changer in Diminished Value Insurance for Luxury and Exotic Cars in America - New York Weekly". nyweekly.com. Retrieved 8 June 2023.
- ↑ Inc, LossPay (19 January 2023). "Cimarron Insurance Co. Backs LossPay to Launch America's First Diminished Value Insurance". www.prnewswire.com. Retrieved 8 June 2023.
{{cite news}}:|last1=has generic name (help) - ↑ Cimarron, Insurance (19 January 2023). "Cimarron Insurance Co. Backs LossPay to Launch America's First Diminished Value Insurance - Fintech Finance". ffnews.com. Retrieved 8 June 2023.
- ↑ Loss, Pay (19 January 2023). "Loss Pay - Overview, News & Competitors | ZoomInfo.com". ZoomInfo. Retrieved 8 June 2023.
- ↑ LossPay, Inc (19 January 2023). "LossPay, Inc. - Crunchbase Company Profile & Funding". Crunchbase. Retrieved 8 June 2023.
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