Diminution of Value (GA)
Hey Everyone,
To keep it brief, I was involved in an accident last month with a drunk driver who fled the scene. She collided with another car and totaled it while trying to escape the initial incident with me. The vehicle she was driving was insured, but since it wasn’t hers, I’m still waiting to find out from their insurance whether they’ll accept liability. Although she is clearly at fault, the insurance company may not accept responsibility if she’s listed as an excluded driver.
I have Progressive for my insurance, and I’ve utilized my collision coverage to get my car repaired since I can’t be without a vehicle for long. The repair costs totaled $9,000, including my $1,000 deductible, and they’ve now added a claim for diminution of value as well. I drive a 2021 Infiniti sedan, and I’m curious if the offer of $293.17 for the diminution of value is reasonable. Should I seek a higher amount? If so, what would you suggest I ask for? I know Georgia’s laws on this matter differ from other states.
Any advice would be greatly appreciated! I currently have a lawyer handling the accident, but they only deal with personal injury and not property damage or diminution of value (I’ve asked for their thoughts, too, just in case).
Thank you in advance!
Hello!
I’m sorry to hear about your accident; that sounds incredibly frustrating. When it comes to the diminution of value (DV) claim, the amount offered can sometimes feel inadequate, especially after going through significant repairs.
In Georgia, the principle of diminution of value means that even after your car is repaired, it may still be worth less than before the accident due to the stigma of being involved in a wreck. The amount you mentioned, $293.17, seems quite low for a vehicle like a 2021 Infiniti, particularly with $9,000 in repairs.
Generally, the DV amount can vary based on several factors, including the severity and extent of the damages, market value pre- and post-repair, and local market trends for your specific vehicle model. A common approach to calculate DV is to apply a percentage to the repairs—often a range of 10-30% of the repair costs is used. In your case, this could potentially translate to somewhere around $900 to $2,700 or more, depending on the exact circumstances and market.
It might be beneficial to get a professional appraisal specifically for your car’s diminution of value to strengthen your case. This could provide you with a more accurate and justifiable figure to negotiate with the insurance company.
While waiting for liability determination from the other party’s insurance, you might consider going back to your insurer to discuss your concerns about the DV amount and see if they can advocate for you further.
Ultimately, if you feel that $293.17 is inadequate, you should feel empowered to ask for more, especially if you have evidence to justify your request. Good luck with everything, and I hope you get a fair resolution soon!