Expert: Richard Hixenbaugh - 7/18/2011

Question
I read a recent reply you supplied referencing DV in Indiana. I was curious is there any case law to support payment of DV on a auto policy to a third party?  I understand the issues with DV on insd policy and know some policies exclude it in their language but where can I find info on third party cases?
Thanks
ALDO

Answer
Hi Aldo,

I am not aware of any specific case law in Indiana that addresses diminished value. However, there is case law from all over the United States over the past 80 years that supports a 3rd party claimants right to be paid for diminished value. Perhaps a better way to look at it is that if there is no case law that specifically denies the right to collect diminished value then it is allowed.

(3rd party claims) You are entitled to all costs and expenses caused by the negligence of the at-fault party. Those expenses include:

All necessary repairs to restore your vehicle to its pre-damage appearance, safety and function.
A replacement rental vehicle or payment for loss of use, from the date of the damage until you pick-up your repaired vehicle.
Payment for any out of pocket expenses such as, police reports requested by the insurance company, mileage and time expenses to obtain repair estimates, dealing with the claim representative, body shop, etc..
Payment for any personal property that was damaged including; child car seats, CDs/cassette tapes, sunglasses, golf clubs, clothes, etc..
Payment for the diminished value of your vehicle due to the repaired damage and the damage history, referred to as Inherent Diminished Value.
Payment for all medical bills associated with any injuries sustaing in the accident, lost wages, required services, loss of consortium and pain & suffering.  

I hope this helps
Richard Hixenbaugh