Collecting your DV claim

None of the following information is intended to be, nor should it be construed as legal advice or an interpretation of any law. We are not attorneys and can not perform as such. For legal advice, please consult a practicing attorney, or contact us for a possible referral.

In third-party claims, where you are the claimant, it is nearly impossible for an insurance company to deny payment for Diminished Value, although they frequently try. You are entitled to have your automobile restored to pre-loss condition and preloss VALUE. Since everyone knows that a vehicle that has been damaged is worth less than one that has not, the at-fault party (and subsequently their insurer through the contract of insurance that guarantees them protection) owes for the depreciation.

Third-party claims are not regulated by the insurance contract (policy), instead, they are governed by a body of law known as "torts".

The basic concept of a tort is that the negligence of one or more individuals has lead to loss or damages of another. It is a general rule that the law of torts attempts primarily to restore the injured party to as good a position as he held prior to the tort.

If you filed a claim under your own coverage, but you were not at fault for the accident, you may still be able to collect for the diminished value.

First party claims (where you were at fault) are controlled by the contract of insurance. Recently, several insurers have added exclusions for diminished value in the insurance contract (policy), stating that the policy does not cover diminished value. If you have one of these new policies, you will probably NOT be able to collect for the lost value if the accident was your fault and you filed the claim under your insurance coverage.

The good news is that this only applies to "First Party" claims - a claim where you are going through your own insurance company; it does not govern "Third Party" claims (where coverage is through the other party's insurance company).

The other good point is that even while the insurer may be successful in denying a diminished value payment, they are still obligated to restore your vehicle to pre-loss condition - not some mystical/mythical "industry standard". There is no such written standard, besides, why should someone else be allowed to determine what is acceptable to you? The true measure of fulfillment is PRE-LOSS CONDITION - and nothing less.

If you are interested in filing a DV claim, if you have questions, or if you want to have Collision Consulting help you ensure your vehicle has been properly and completely repaired, please email or call us at your earliest convenience.

None of the foregoing information is intended to be, nor should it be construed as legal advice or an interpretation of any law. We are not attorneys and can not perform as such. For legal advice, please consult a practicing attorney, or contact us for a possible referral.