On July 10, 2003, the court gave final approval to a settlement, apparently valued at $825,000, in a class action on behalf all persons insured by an automobile insurance policy issued in Georgia by American Manufacturers Mutual Insurance Company, American Protection Insurance Company, or Lumbermen's Mutual Casualty Company and who made a claim for damage to their vehicles under their collision, comprehensive or uninsured motorist coverage. The action sought reimbursement for the diminished value of these vehicles due to their having been repaired. Under the settlement, the companies agreed to reimburse those drivers the amount by which the value of their vehicles was reduced--its so-called "diminished value"--by the mere fact that it was involved in an accident and then repaired.

The theory of diminished value asserts that buyers choosing between two otherwise equal vehicles will select the one that has not been previously damaged and repaired, even where the repairs to the other vehicle were first-rate. Therefore, this theory contends, the very fact that a car has been involved in an accident causes the car to lose value, even if it was fully repaired.

The class is made up of persons who were insured under a Georgia personal lines insurance policy issued by any of the three insurance companies who reported (a) one or more valid physical damage claims for vehicle damage under that policy's collision or comprehensive coverages, which occurred and was reported between July 17, 1996, and November 1, 2002, or (b) one or more valid physical damage claims for vehicle damage under that policy's uninsured motorist coverage which occurred and was reported between July 17, 1998, and November 1, 2002.

The settlement does not cover: (1) vehicles that were totaled, (2) vehicles the motorist did not own, (3) temporary substitute vehicles such as rental cars, (4) claims relating to partial theft, (5) claims that were limited to glass replacement, (6) claims in which the policyholder was actually paid for the diminished value, (7) claims relating to loss of personal property, (8) claims in which the insurance companies paid $157.60 or less in repair of the vehicle, (9) claims involving non-luxury vehicles 12 years or older at the time of loss, (10) claims in which paintless dent removal repair method was used to repair damage, (11) claims relating to tire damage, (12) claims involving trailers, (13) claims for which no payment was made by the insurance company at the time of the claim, and (14) all claims in which more than one of the policy's coverages were applied to the loss.

Under the settlement agreement, class members will receive a cash payment of $215, less reasonable attorneys' fees and expenses.

Class members can call the Settlement Hotline toll-free for further information at (800) 222-8952. To participate in the settlement, class members do not have to do anything at this time. Class members should have received a mailed notice by June 7, 2003, in regard to the settlement. If you feel you are an eligible class member but did not receive the mailed notice, please write to the Settlement Administrator. You must include your name, current address, daytime telephone number, policy number and date of accident/loss. Please mail your correspondence to: LMC Diminished Value Settlement, P. O. Box 734, New Albany, OH 43054. This will enable the parties to verify your eligibility as a potential class member.