After a car has been damaged in a car accident, it may be worth less money than before the accident. There is stigma with cars that have been in accidents, particularly if the accident caused a lot of damage to the vehicle. While it may look the same as it did before the accident and drive the same, the actual value of the car may have diminished, as potential buyers could be turned off by the fact that the car was in a significant accident. This inherent diminished value or diminution of value is something that Florida law may entitle the owner of a damaged car to. See Siegle vs. Progressive Consumer’s Insurance Company, 819 So.2d 732 (Florida 2002).
Common sense suggests the newer and more expensive a car and the more significant damage to a car would likely result in a greater diminished value of the vehicle. If we are dealing with an older car and very little damage to the car, then the diminished value could be very small or even nothing. On the other hand, if someone has a brand new, fancy, and expensive car that suffered significant property damage, the diminished value could be very large, if there is proof that the value of the car dropped because of it being labeled a “damaged car.”
If you are at fault in the accident or if for some reason (like if the person that caused the accident does not have insurance or does not have enough insurance to fix your car), then your claim for damage to the car would be against your own collision insurance coverage. Whether you would have a diminished value claim against your own insurance would be based on the policy language but most likely the policy language will NOT allow such a claim, generally in Florida. See Siegle vs. Progressive Consumer’s Insurance Company, 819 So.2d 732 (Florida 2002). If your claim is against the other car that caused the accident, then Florida law will generally allow such a claim and you may be able to recover such damages against the other driver and/or their insurance.
If you have been in a car accident, please call Drucker Law Offices at 561-483-9199 (Boca Raton Main office) or 954-755-2120 (Coral Springs satellite office) or 561-967-3840 (Lake Worth satellite office) or 305-981-1561 (Miami satellite office) for a free consultation.
