Diminution of Value to Your Vehicle Following an Automobile Accident

Has your vehicle lost value after an autoat least two cases. Florida's Third District Court of
accident? How many of us would agree to payAppeals in the case of McHale v. Farm Bureau
the full fair market value for a car that we knewMutual Insurance Co. 409 So.2d 238 (1982) stated
had received substantial property damage in anthe proper measure of damages is the cost of
accident? One of the basic questions any buyerrepair, plus the reduction in the value of the
asks before purchasing a car is whether it's beenvehicle. The burden of proving the reduction in the
damaged in an accident. Professional auto buyersvalue of the vehicle is on the plaintiff bringing the
are trained for the signs indicating body repairclaim.
damage on a car. The average person knowsProgressive Insurance Company, in Siegle v.
they should always request a Carfax report on aProgressive Consumer's Insurance Company, 819
vehicle before purchasing it. This is because we allSo.2d 732 (Fla. 2002), was sued by one of its
recognize that vehicles lose their value after theown insureds for a diminished value of the vehicle
vehicle sustains substantial damage in an accident.which it had repaired for their insured. In
Vehicles simply are not worth as much as aProgressive's legal brief to the court, they argued
vehicle that has never been damaged.that, while a diminished value claim would not exist
Florida recognizes the existence of a tort claimin Florida against them by their own insured, third
for diminished value of a vehicle against theparties would be entitled to seek recovery on
tortfeaser (the party causing the accident). Thesetheir claims for loss of value. Thus, while denying
claims do not exist in first-party cases, those inthe existence of these claims in first party cases,
which your own insurance company has paid forProgressive acknowledged they do exist in tort
the repairs under their contract of insurance withfor third-party claims.
you. First-party claims are governed by the lawWe always recommend our clients obtain quality
of contracts and not by the law of tort actions.photographs of their vehicle showing the damage
The claim for diminished value of your vehicle issustained, prior to repair. Once we obtain the
just one of the claims for damages which may berepair records, an appropriate expert may be
pursued under Florida's tort laws, in addition to theobtained to give an opinion on the loss of value of
more well known claims for bodily injury.the vehicle after its repair. There is nothing in
Diminished value claims may also be called lostreported cases which requires that the vehicle
value, reduced value, or reduction in the valuemust have been sold or traded in order to pursue
claims. It could be argued diminished value claimsthis claim. The actual loss sustained, of course,
should apply to any vehicle including trucks,must be proved and must be substantial enough
motorcycles, autos or automobiles, boats, trailers,to warrant the time and expense required to
and even wheelchairs.pursue these claims successfully.
The measure of damages has been addressed in