Diminished Value Claims in California
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Many states allow insurance companies to add in this language into a policy. When they do so, it typically means that the policy states that the insurer will pay for direct and accidental loss or damage, meaning actual physical damage done to the covered auto, but not indirect loss such as a loss in value, meaning the Diminished Value of the vehicle.
If you're making a claim for damages, you'll need to consult with the insurance company's insurance adjuster to see if Diminished Value is specifically excluded in their policy.
You may want to start by finding out how much your vehicle would have been worth before it was damaged and what it would be worth if you sold it now. The dealership where you purchased the car may be able to help you obtain the vehicle's value after the accident.
Many insurance providers believe the role of auto insurer is to repair or replace a damaged vehicle to pre-accident condition and the insurance coverage is not intended to guarantee the value of a vehicle before or after a repair is made. You may need to seek legal counsel to obtain Diminished Value compensation. However, you can start by discussing this issue with the claims adjuster.
The California Department of Insurance may also be of help to you if you contact their consumer division to discuss your situation.
First Party Covered | NO | Third Party Covered | YES |
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Statute of Limitations | 3 YEARS |
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