Imagine this scenario: You’re driving around Southern California, obeying all traffic laws, when someone rear-ends your vehicle with their car. The impact is bad and your car is heavily damaged. The insurance company decides your car is worth saving and they compensate you for damages. That’s great and all, but what about the fact that even after it’s repaired, the value of your car simply won’t be the same?
Do insurance companies have to compensate you for this loss of value?
The insurance company paid for the repairs but do they have to compensate you if the value of your car is reduced as a result of the accident? Let’s say that your car was worth $25,000 pre-accident, it needed $7,000 worth of repairs – which the insurance company paid for – but is now only worth $20,000?
It may seem like someone should be responsible but a recent California Court of Appeals ruling made it clear that in one particular case, an insurance company did not have to pay for diminution of value. However, the court was also clear that their decision was based on specific language within one specific insurance policy. If your vehicle has been damaged then you need to contact Law Offices of Fernando D. Vargas right away so we can take a close look at your case.
Getting compensated for property damage from a negligent party
No matter what type of auto accident you were involved in, whether it was a t-bone collision or you were hit head on, you are entitled to compensated for damage to your property if another driver was negligent.
According to California law, the injured party is entitled to either the cost of repairs to their property or to the loss of value to their property – whichever is less. In order to determine the reduction in value of your car, you must first determine the fair market value, which basically means the highest price a buyer would pay without pressure to buy the vehicle and with full info and disclosure about the condition of the vehicle.
In most cases, if the cost to repair a vehicle is more than the value of the car, you’d be entitled to the value of your car. If the insurance company decides to repair the vehicle then you’d also be entitled to damages for the loss of your vehicle while it’s being repaired. Generally speaking, this includes the cost of rental car fees.
A physical injury isn’t the only way to get hurt during a car accident
If you’ve been injured in the accident, for example if you have a fractured bone, then you likely know you need to seek out the services of an attorney. However, many people assume that if the damage was only to their property that they can handle the case on their own. At Law Offices of Fernando D. Vargas, we urge you to call us today for a free case evaluation.
