Quote:
Originally Posted by DenverSteve
Okay. I'll be the devi's advocate. How do you justify a diminished value claim prior to attempting to sell a vehicle? You, until then, don't have any diminished value - do you? Additionally, how would you calculate the "diminished portion of the claim. Obviously, tort law is not my strong suit, but I'm curious as to how this would progress. I've never seen it done, only read about it.
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This is the argument most insurance companies here in Canada use, where diminished value claims are typically not paid out.
For example if you go to trade-in or sell a newer but recently repaired vehicle to a dealer you will get far less than a comparable car with no damage history. This, I think everyone agrees on, but if you keep the car, say for 10 years before you trade it in its value will have dropped due to age in addition to its damage history compared to other comparable cars.
The question is should the insured be "made whole" at the time the damage occurs or at the time the vehicle is sold or traded and diminished value occurs?