Simply Explaining Insurance #106- Diminished Value
What is diminshed value? Let’s say that you are in an accident in your new car. It’s a pretty good one too. The hood looks like a sound wavelength. The bumper is on the ground. It’s just a mess and you know in your heart that when you are ready to sell or trade in this car, it’s going to be worth less.
This is called diminished value due to an accident. Does insurance cover this? The simple answer is, unlikely. I am not aware of any formal coverage or endorsement that you can put on your existing auto policy to cover this. That’s not to say you can’t ask for it.
That is my only recommendation. Ask your claims adjuster for coverage because you know that the car will be worth less when you are ready to sell it or trade it in. I am aware of some cases where the adjuster added a little more to the settlement.
Now, if we are talking something a little more robust- like your Ferrari was t-boned but was still able to be fixed, then you may have a different conversation. I rarely suggest getting a lawyer involved. If you think you are getting a raw deal because your $150,000 car is damaged and they won’t kick in for some diminished value, a consultation with a lawyer might be worth it. Remember, when you take it to this step, you have to PROVE the value is diminished with hard data and FACTS.
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