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Am I entitled to receive a "diminished value" on my vehicle in California?
Recently, my parked vehicle was involved in a hit-and-run. Luckily, a neighbor witnessed the hit-and-run and called the police. Within an hour, the driver was arrested for a DUI. My insurance company only wants to cover the cost of the repairs. I know that even after the vehicle is repaired, no one is going to want to buy it for the pre-accident value. Most people are reluctant to purchase a vehicle involved in an accident or they want a significant discount. I am curious if I can go after my insurance company or the other insurance company for funds for "diminished value".
9 Answers
- Anonymous1 decade agoFavorite Answer
It's going to depend on the specific language in your policy as well as how hard you're willing to fight to recover the loss. I have personally never heard of anyone being able to recover the diminished value, but I do see some testimonials on sites that claim to help you recover it. I'm dubious.
In some states, including California, an insurance policy may specifically state that they will not pay for diminished value. So you need to look at your policy closely to determine if that's true for you. If the language is vague, then you may have a case. But the insurance company isn't going to voluntarily cough up the diminished value. You're going to have to fight for it and use an attorney. Note this blurb:
Except in four states (Georgia, Mississippi, South Carolina and Tennessee) where some court decisions have held otherwise, insurers say claims for diminished value are not payable under comprehensive or collision coverages. Most insurance policies say that when the car is damaged, the insurer will pay the cost of repairing the car or its actual cash value (when the car is considered a total loss). There is no mention of coverage for diminished value, and the payment of diminished value was not contemplated when rates were established. If insurers are compelled to begin providing coverage for diminished-value claims, they will have to adjust their premiums to take this new obligation into account.
http://209.85.165.104/search?q=cache:1V_ZGOr8qe0J:...
There's lots of good information at that link as well as this one which talks about the varying success of diminished value law suits:
Diminished value lawsuits have seen varied success around the country. Successful cases are generally made by third-party claimants in an accident, not the insured.
In November 2001 the Georgia Supreme Court ruled in favor of two State Farm customers who asserted that wrecked cars are worth less simply because they have been wrecked — no matter how expertly they're repaired — and that insurers are liable to pay the difference. Because of that ruling, all auto insurers in Georgia must now pay diminished value claims. In January 2002, Allstate settled a similar class action case in Georgia, agreeing to pay Georgia policyholders a total of $59 million for the diminished value of their cars repaired after crashes since January 1997.
In November 2001, the Supreme Court of Delaware ruled that an insurer's obligation to "repair or replace" a damaged vehicle did not mean the insurer was further obligated to pay diminished value (O'Brien vs. Progressive Northern Insurance Co.).
In Texas, a November 2000 decision by the 14th Circuit Court of Appeals in Houston, in the case of Dennis Carlton vs. Trinity Universal Insurance Co., concluded that an insurer is not liable for diminished value if repairs have been made that return the vehicle to its pre-loss condition. That position is backed up by the Texas Department of Insurance (TDI): "An insurer is not obligated to pay a first-party claimant for diminished value when an automobile is completely repaired to its pre-damage condition," says Lee Jones of the TDI. "The language in a standard Texas auto policy does not provide payment for or refer to diminished value. That's our position," Jones says. Texas auto insurance policies use a standard form from the TDI, so the state does not use ISO filings.
http://info.insure.com/auto/collision/diminishedva...
Okay, so none of the cases mentioned were in California, but the problems remain the same. Now, you may want to contact a service like this to see if they can help, but I suspect your chances of recovering the diminished value will not be good, plus you may be out whatever fees they charge:
http://autoloss.com/diminished-value.htm
Good luck, sorry for the accident and what I think is bad news in the form of this answer, but if you're willing to pursue it a little further, maybe, just maybe you can recover the value.
- BootsLv 71 decade ago
Your policy will not pay Diminished Value. The only state I know of that provides First Party diminished value is Georgia.
- bettyswestbrookLv 41 decade ago
In every state, there is an office of Financial Responsibility (might have a slightly different name in your state), the Department of Insurance is under this office. Call them and they can answer any ?? you have on automobile insurance or you can ask your Auto Damage Adjuster, he has to tell you,but he does not have to volunteer the answer.
Source(s): 8 years as Auto Liability Adjuster. - How do you think about the answers? You can sign in to vote the answer.
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- ?Lv 71 decade ago
If the car is repaired properly, and the title does not change to a salvage title, there will be no diminished value.
- ken kLv 71 decade ago
aint happening/the insurance co agreement is for like -kind-quality for repairs and replacement parts/that diminshed bull pappy wont fly unless you have specific policy addressing that issue