WHAT EXACTLY IS DIMINISHED VALUE?
DIMINISHED VALUE is the difference in value of a vehicle before & after it’s in an accident.
- Majority of the time, the greater the damage that is caused to a vehicle, the greater the DIMINISHED VALUE CLAIM tends to be! Whether or not a claimant is entitled to diminished value varies from state to state, and not all states accept and/or recognize diminished values claims.
Florida, for example, is a ‘diminished value‘ state. Though, in the state of Florida, in the event you are found to be the at fault driver in an accident, you are NOT able to recover damages for the diminution in value to your vehicle. Now, let’s compare how Florida handles diminished value claims to how the state of New Jersey handles them. The state of New Jersey is also considered a “diminished value” state. In New Jersey, you can file a diminished value claim against the driver who is at fault in an accident. New Jersey is very similar to Florida in that they recognize diminished value claims, but yet, the two states are not identically the same when it comes to the ability to recover for the diminution in value to your vehicle.
Here’s the difference…
In New Jersey, if you are not found to be the at-fault driver, you CAN file a diminished value claim through your own insurance company under your under/uninsured motorist coverage policy, commonly referred to as a first party claim. In the state of New Jersey, third-party diminished value claims are always permitted.
In the state of Florida, you are NOT able to file a diminished value claim through your own under/uninsured motorist coverage policy. This is true in Florida regardless of who is at fault for the accident. Only third party insurance claims are permitted in the state of Florida.
Let's explore diminished value claims in the state of New York. New York is a problematic diminished value state. For many years, in the state of New York, diminished value claims were not recognized by insurance companies because there was no case law on diminished value in the courts. The recorded precedent in the state of New York is Franklin Corp v. Prahler (932 N.Y.S. 2d 610, 616) circa 2011. This case held that recovery for diminished value is limited to unique vehicles of potential appreciation in value. Many vehicles do NOT fall within this narrow category, which leaves whether or not they are entitled to diminished value as problematic. There have been a few small claims court victories that have not been overturned by insurance companies. New York has recognized the financial damage sustained by the not-at-fault victims of traffic accidents in these victories in the small claims divisions but the issue has not been frequently addressed in the courts in general, and definitely not in the higher courts. Diminished value is problematic in New York due to the limited case law!
If you believe you are entitled to a Diminished Value Claim, let us rigorously pursue it to ensure you, the claimant, gets justice for the damages that caused a diminution in value to your vehicle!
Have you been FAIRLY compensated for damages done to your vehicle?
- NOT SURE?
Call The SHELDRICK Law Firm 561-440-7775 for a FREE consultation & speak directly with our personal injury and accident attorney Kayla Sheldrick.
The SHELDRICK Law Firm
Phone: (561) 440-7775
Available 24/7
Locations: Florida, New Jersey, New York