Diminishing Value Claim Question?

Question

My wife was recently hit by an Arizona businessman while driving her new 2007 Camry here in Texas. Due to the fact that the vehicle is only a few months old does, anyone know if we have grounds to file a claim for diminishing value? I read an old article on the matter, http://www.irmi.com/Expert/Articles/2004/Cooper09.aspx but haven't been able to find anything current.

EA

Answer 1

You have to find out if Texas has allows claims for dimunition of value. Majority of states do not. If Texas does, then YOU have to prove it. The first step is to sell the car after it's repaired. These claims are a HUGE pain the a** and simply not worth it.

Answer 2

Under Texas insurance law, your carrier is not obligated to cover you for Diminished Value (link #1) but you have the right to TRY to pursue a Texas 3rd party carrier in liability claims for DV (Does not guarantee payment, it just doesn't forbid the attempt). However -- Arizona auto policies have adopted ISO language that excludes DV claims (link #2), period.

And just an FYI, the few states that still allow DV claims usually require you actually incur the financial hit, ie, sell the car and show a loss: Not just an "assumed" or "estimated" loss in value, but you've actually sold the car for less than it was worth and the only reason for the loss was this accident. If you drive it for the next 200,000miles/10 years and never have another problem, then you've never lost anything.

So while you can try to pursue the driver directly at your own expense, I'd wager his carrier will provide him defense based upon their policy provisions. You can double check with the Texas Insurance Commissioner, but I afraid it seems that you're legally barred from recovery.

Answer 3

Depends on your state and how extensive the damage is.

For example- did she just have to get her bumper components replaced? If so.. there is no diminished value.. it has been fixed.. and no one will ever know the difference.

Now, if your state allows diminished value.. and your brand new car got 10k in damage including extensive frame damage... then yes, you may be owed money. But dont expect to get the value of repairs or any ridiculous amount- be reasonable.

Answer 4

If anything shows up on the carfax or similar report the vehicle is automatically valued at up to 30% less depending on the year, make and model. Most insurance companies do not subsidize this loss in value. So next time hope the car goes for total loss.

Answer 5

DV is a really gray area, some states allow it, some don't. Some owner policies pay it, others only allow the other vehicle's policy to pay. If you have nominal damages then DV just isn't there -- as compared to $12,0000.00 of collision damages. Just remember, DV NEVER equals the amount of the estimated/paid damages.

Answer 6

Diminished value? Sorry, not on my premium's dime.