Does comprehensive cover dimished value?

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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: Aug 23, 2016

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Insurance Question from Fraser, MI

Asked on 08/23/2016

Does comprehensive cover dimished value? Hello,I live in Michigan and recently drove into a sink hole. My car filled with water, and so now has decreased value.Comprehensive coverage was used to do the repairs to my vehicle and has been in the shop a few times, but still smells like mold.My insurance company (USAA) claims that I cannot file for diminshed value under comprehensive. I feel that should not be the case since now vehicle is worth almost half of what it was.Can you give me guidance on if this is true or not?Thanks,SGT Thomas, Troy

Answer given on August 23, 2016

If your car is damaged, either by a collision or a comprehensive loss, the insurance company is not responsible for any diminished value of the car. However, the insurance company is expected to repair the car to its original condition, or as close to that as possible. If the car still has a smell of mold, then more repairs need to be made to the vehicle to get rid of the smell.Water damage is a difficult repair since the water can get into areas of the car that is hard to fix or clean.After the smell is removed then the vehicle’s value will be what it is. If all repairs are done correctly then the vehicle should appear to be in the same condition as before the incident. The loss will appear on the history of the car so when it comes time to sell it, the buyer can learn of the claim and may offer a lower amount for the vehicle.


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