Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Mar 24, 2012

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Insurance Question from New Philadelphia, OH

Asked on 03/24/2012

Will insurance pay me for lost trade in value of my repaired vehicle? 2010 Kia Sole, 18,000 miles. Value of $17,000 before damage. Repair estimate $9,333Other driver at fault. has insurance. I understand that a dealership will reduce the trade-1nvalue by 15% to 20% depending on the collision repair.

Answer given on March 25, 2012

Since each state is different in the handling of auto insurance claims and the issue of diminished value, you need to read your contract and talk to your agent or insurance company. There should be some reference to diminished value if it is an acceptable part of the claim.Many states do not allow for diminished value as a part of the claim. The damage to the car is determined and if the car’s actual cash value is higher than the amount it will cost to repair it then they will pay to repair it. If it is a total loss, they will pay the current value of the car based on condition, mileage and any other factors that may come into play.Damaged cars are reduced in value when used as a trade in or sold to another party. With the ability to determine if a car has been repaired due to an accident, this can affect the value of the car. However, if it was properly repaired, the reduced value should be minimal and not adversely affect the resale value of the car.


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