Are Insurance Depreciation Deductions Illegal in Puerto Rico

You expect your insurance policy from companies like MAPFRE, Triple-S, Universal Insurance and Cooperativa de Seguros Múltiples to cover original equipment parts, accessories and even labor costs.  But that isn’t always the case.  Unfortunately these companies have been charging consumers an inappropriate depreciation deductions for replacement auto body parts. 

Lawsuits have been filed against several automobile insurance carriers in Puerto Rico challenging the practice of charging consumers a depreciation deduction for replacement auto body parts.

Insurance carriers such as MAPFRE, Triple-S, Universal Insurance and Cooperativa de Seguros Múltiples have been using this practice for over 15 years to deprive consumers of the money they deserve.  It is estimated that the companies have charged consumers more than $100 million in inappropriate depreciation deductions during that time.

The lawsuits allege that the carriers unlawfully add an automatic “depreciation deduction” when replacing damaged parts, requiring that policyholders pay additional out of pocket monies even though they may have had full collision coverage in their vehicles.   

While such a practice might be justified when replacing worn tires or windshield wipers, there is no legal justification for this practice when dealing with windshields and bumpers!

Recent Ruling

In a recent decision, San Juan Superior Court Judge, Iris L. Cancio Gonzalez, of the Puerto Rico Superior Court, ruled that the insurance provider Cooperativa de Seguros Múltiples (CSM) has the burden of establishing the legality of  any depreciation discount that it applies to claims for partial loss, the reasonableness of the method it used to calculate the depreciation, and the factual basis for applying the discount. 

Judge Cancio Gonzalez issued her ruling following plaintiff’s filing of a lawsuit against CSM, Lynette Rodríguez Flores v. Cooperativa de Seguros Múltiples.  The plaintiff’s vehicle was damaged in an accident in October 2020, which was supposed to be covered under her CSM insurance policy. CSM estimated the repair costs, but rather than paying the repair costs (less the deductible), it applied an additional deduction in the amount of $681.61, based on alleged depreciation of the parts being replaced.

In issuing its ruling, the Court struck down CSM’s arguments that the Puerto Rico Insurance Commissioner’s Office had authorized such depreciation deductions.

Take Action Now!

Consumer rights should be prioritized, and 1-800-LAW-FIRM will continue to advocate on behalf of all clients that have been wronged by these unlawful actions!  We are currently investigating claims against  insurance providers in Puerto Rico that are charging consumers a depreciation deduction for replacement auto body parts. 

Join The Fight!

After years of paying for insurance policies which they thought would cover their repair costs, did you  find out that you were required to pay additional repair costs? If so, you should be entitled to receive compensation! 

Submit the following form to join the fight and hold these greedy insurance companies accountable!

Can I Join The Fight 

If you can answer yes to the following questions, you may be eligible to file a claim!

Were you in a car accident during the last 2 years?

Did your car need repairs?

Did you submit an insurance claim?

Was your insurance claim not considered a “Total Loss”?

Do you have a repair bill that shows depreciation was deducted?

Once you sign up we will need to review your insurance policy declaration page, the insurance companies breakdown of expenses and a copy of the payments that were made by the insurance company.

How Much Is At Stake

The lawsuits allege that the carriers unlawfully add an automatic “depreciation deduction” when replacing damaged parts, requiring that policyholders pay additional out of pocket monies even though they may have had full collision coverage in their vehicles. It is estimated that the companies have charged consumers more than $100 million in inappropriate depreciation deductions during this period, said Attorney Francisco Colón-Ramírez, who filed the lawsuits in collaboration with consumer advocacy law firm 1-800-LAW-FIRM.

Which Insurance Companies May Be Doing This

Our team is currently reviewing insurance repair claims for the following insurance companies: