Loss of Use; Diminished Value

[sjjj07]

I live in AZ. In May, I was rear-ended by another driver. At the time, we were trying to sell the car. After the car was repaired, I submitted claims to the insurance company for loss of use and diminished value (the car sustained frame damage). The repairs took 67 days, so I submitted a loss of use claim in the amount of 1/2 of the cost of the rental car for that period (we did not rent a car) in the hopes that the claim would be settled quickly. The insurance company replied that the allowable for the repairs was 5 days and they would allow $25/day--$125. My total claim was about $1,300.

They also denied the diminished value claim stating that the car did not lose any value as a result of the accident. I debated with the adjuster to no avail--logic did not work. Anyway, some online sites valued the loss of value at less than $500.

I am now listing the car at about $1,000 less than I originally listed it is clear I will lose about $1,500 when I sell this car as a result of the accident.

What recourse do I have (there were no injuries of note other than a lost toenail and soreness).

ThanksWhat is the name of your state?

 

[JETX]

What recourse do I have

Your state, like most of them, have rejected 'loss of value' claims.

"Arizona’s Court of Appeal refused to allow for recovery of diminution of value in Johnson v. State Farm Mutual Automobile Insurance Co., 754 P.2d 330, 157 Ariz. 1 (Ariz.App.Div.2 02/29/1988) where it was stated:

We agree with the trial court that under the provisions of the insurance contract and the evidence here, plaintiff's measure of damages is not the difference in the market value of the automobile immediately before and after the collision. The contract of insurance does not so provide. To apply such measure of damages would be arbitrarily reading out of the policy the right of defendant to make repairs or replace the damaged part with materials of like kind and quality."

 

[ecmst12]

You're lucky they allowed anything for loss of use - most won't pay anything if you don't actually rent a car from a legitimate leasing agency and have a receipt.