Can I be legally denied monies for diminished value claim?

UPDATED: Sep 30, 2022

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Can I be legally denied monies for diminished value claim?

I was recently involved in an accident in which
the total damages for my vehicle repair came
to nearly 7,500. As a result, my vehicle will
now be registered as having massive damage
repair and I will not be able to resell or trade it
in for what it would have gotten prior to this
massive damage repair label. I have contacted
my insurance agent and their response
seemed a little nonchalant. Can I be legally
denied money for my diminished value claim or
must they pay this money according to state

Asked on December 28, 2016 under Accident Law, Georgia


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

No, they do not need to compensate you for the diminished value of the vehicle (unless you happen to have bought a policy providing for that, which is very unlikely). While you should check exactly what your policy says to be sure, the standard insurance policy obligates the insurer to pay the cost to repair the car (or its then current fair market or blue book value, if it is totalled)--no more and no less. The insurance policy is a contract; the insurer does not have to pay other than or more than the amounts the policy requires them to, and the standard policy has no provision for diminished value.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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