Expert: Anne - 12/8/2008

Question
Hi Anne,

Heres a short scenario...

A accident occurs with a commercial truck.  The companies insurance representative admits fault and will cover claim.  The victims' finances are very budgeted.  The wrecked car was previously being considered to sell to help with monthly expenses.  Now, the selling price will have to be lowered because of the accident discloser.  Can the difference of the lost value be claimed.  The rental car furnished gets 22 MPG and the wrecked Hybrid car gets 45 MPG.  Can the difference in increased operating cost (fuel) be claimed.

Thank you so much for your time.

Answer
Hello Benny,

Here is short answer to your short scenario.

It seems to me like you have two questions. Let me break them down for clarity.

(a) You asked:  Now, the selling price will have to be lowered because of the accident discloser?

You are really asking if you can make a diminished value claim or a diminution no value claim. The answer is, yes you can in all 50 states. Now, before I get attack on my question, yes every state differ on this issue.

However, the difference is when you want to make this claim against your own insurance company. Some insurance policies “disclaim” economic loss (the difference between what the car is worth before and after the accident) to the insured. However, some states deem that clause unenforceable (thereby giving you first party coverage for the diminution of value). Some states believe that this clause is 100% enforceable (thereby denying you first party coverage).

However, you are not making a first party claim. You are making a third party claim. You (the injured third party) is going after the insurance company of the person who hit you. Therefore, no insurance language can apply to you (you did not have an insurance policy with that specific insurance company), and therefore you are entitled to this.

Please, note, this is a very hard claim to make, and believe, insurance companies will do everything on your power to discourage your claim. For more information on how to do this, visit: http://www.auto-insurance-claim-advice.com/diminished-value-claim.html

(b) The rental car furnished gets 22 MPG and the wrecked Hybrid car gets 45 MPG.  Can the difference in increased operating cost (fuel) be claimed?

Yes, you should be able to recover this. The objective of insurance is to put you back in the position you were before the accident. Keep a clear log of the mileage you drive and ask for the difference. You have a pretty good argument here (probably not Hybrids for rent), so they should pay for this. If they give you issues, talk to an attorney.

Good Luck,
Anne.