Depreciation of the value of your vehicle after a collision

Posted Saturday, March 02, 2013 by Ed Harper

Oftentimes a newer car will be in a wreck and the insurance companies will attempt to repair the vehicle. What happens when the car has a significant reduction in the value because of the stigma of having been repaired, and the value has gone down significantly?

In Washington, the courts have interpreted the depreciation of value to be a valid claim, and something that should be included in a demand to the respective insurance companies handling the property damage claim.

Inherent diminished value has been deemed to be foreseeable and proximately caused by the physical damage sustained in a motor vehicle wreck. The Court of Appeals in Div. II has stated, “A vehicle suffers diminished value when it sustains physical damage in an accident but due to the nature of the damage it cannot be fully restored to its pre-loss condition. The remaining irreparable physical damage such as for example weakened metal which cannot be repaired and which results in diminished value.” Moeller v. Farmers Ins. Co. of Washington, 155 Wn. App. 133, 229 P.3d 857 (Div. II 2010).

“The reasonable value of necessary repairs to any property that was damaged plus the difference between the fair cash market value of the property immediately before the occurrence and its fair cash market value after it is repaired.” WPI 30.12.

Therefore, if your car has been in a collision it is likely to have depreciated in value. If you have any questions or concerns about how your property damage claim is being handled, contact Harper Law PLLC.

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