r/Insurance • u/pineappleshaked • 1d ago
Auto Insurance Diminished value claim denied
Location: California
Edit: It was against the at fault party insurer, not my own.
Car is Subaru impreza 2023 model, accident date: Nov 2023 milage: 6K at the time of accident.
Carfax consider minor damage(rear bumper+ other parts replaced). Reapirs costed 5K
Original post:
By taking advice from all reddit buddies, I filed Diminished value claim for a 2.5 year old claim. It got denied.
What should be the next steps? Chat-GPT says that the case cited aas for first party claims, so reply accordingly, also hire a DV appraiser report.
Excerpt from letter:
"please be advised that Califormia Law does not require insurance companies to provide coverage for diminution in value. Per Carson v. Mercury Ins. Co. (2012) 210 Cal.App.4th 409, in which the Court stated in reilevant part, "when the insurer elects to repair the car to its pre-accident condition, it is not aiso required to pay for any loss of value to the vehicle. To hold (the insurer) liable for the automobile's diminution in value would render essentially meaningless its clear right to elect to repair rather than to pay the actuell cash value of the vehicie at the time of loss. (Id. at 420.) "(A)n insurer's election to repair is concusive provided the repair places the automobile substantially in its pre-accident condition. If it does not, then the automobile is deemed a total loss and the insurer is liable for the pre-accident value of the car." (ID. at 421 citing Rav vs Farmers Ins. Exchange (1988) 200 Cal.App.3d 1411, 1417 and Owens v. Pyeatt (1967) 248 Cal Apo 2d 840, 849.)