Expert: Richard Hixenbaugh - 9/16/2010

Question
Hi,
I was involved in a car accident earlier this month where I was rear ended. Since I have collision coverage I want to go through my insurance company to have my car fixed because my car is brand new and the at fault driver's insurance company uses aftermarket parts whereas mine will use OEM parts. I bought the car brand new for about 2 months ago with less than 2,000 on it when the accident took place. The repair estimate is about $3,000 to repair the back of the car. Can I still file a diminished value claim with the at fault driver's insurance company when I go through my insurance company for repair? How successful do you think I will be in seeking diminuitve value compensation? I'm in California and don't know if such law exists to compensate me for loss in value of my car due to this accident and, if so, do I have to do a third party claim for vehicle repair in order to file a diminished value claim?

Answer
Hi T,

Yes you can make a claim for diminished value in California. In fact is a person is not at fault in the accident, diminished value is a valid claim in all 50 states.

It is also just fine that you have your insurance company pay for the repairs and then pursue the at fault persons insurance company for the diminisihed value. You will have to hire an independent vehicle appraiser to determine the amount of diminished value you are owed. You should also expect the insurance company to put up a fight and argue with what ever you send them. Your appraiser should also be able to help you answer any of the nonsense that the insurance company tries to throw your way.

For additional information on diminished value and to find an appraiser visit www.collisionclaims.com .

I hope this helps
Richard Hixenbaugh