Expert: Ron Cercone - 8/12/2009

Question
I just purchased a new 2010 vehicle.  Upon doing so the vehicle was parked for nearly a week before I decided to drive it.  The vehicle has less than 300 miles because of the distance as to where it was purchased.  On the sixth day of ownership the vehicle was hit while parked.  Keep in mind this is a brand new vehicle.  The insurance company of the person who hit the car advised they would fix the vehicle.  My concern is this is a brand new vehicle I feel that I should be entitled to getting a replacement vehicle due to the following reasons: 1.  Brand new vehicle 2010 with less than 300 miles 2. A warranty was purchased and now that the car has been hit I feel that there will be issues in the event if problems occur I am thinking this would make my warranty null and void due to this incident.  3. The brand new vehicle ownership of one week now has a vehicle fact due to the accident.  Is there a law to have the insurance company replace the vehicle?  Is there anything that can be done to have them replace the vehicle due to loss of value because of the incident?

The incident...driver stated he thought he placed the car in reverse but went forward.  In doing so he pushed the vehicle over 25 feet out of the parking space in addition to hitting another vehicle.  According to the adjuster whose looking at my new vehicle they have stated that there is $4500-$5000 worth of damage. Then in addition to this they are willing to pay the depreciation value on the vehicle.  I am not pleased with this and want to know my options... I don't want a wreck vehicle... I did not purchase a wreck vehicle and at this point if I decide to sell the car I've lost a great deal in savings when I purchased the car....

Answer
Legally in most states, the insurer owes whichever is less, the cost to repair the car or the value of the car. As to "diminished value" I have never seen an insurer pay for this, but there are some websites which say they can help you get this. Only do it with a money back guarantee.

One option may be to take the settlement check without signing a release and go to small claims court for the difference and see if a judge agrees with you that they should replace the car.