Diminution of Value (GA)
Hi everyone,
To keep it brief, I was involved in an accident last month caused by a drunk driver who left the scene. She also collided with another vehicle, totaling that car while trying to escape from the initial accident with me. Although her car was insured, it wasn’t her vehicle, and I’m still waiting to find out if the insurance company will accept liability. She is clearly at fault, but the insurance might deny liability if she’s listed as an excluded driver on the policy.
I have Progressive for my insurance and utilized my collision coverage to get my car fixed since I rely on it daily. The repairs totaled $9,000, including my $1,000 deductible, and they recently added a claim for diminution of value as well. I drive a 2021 Infiniti sedan, and they’ve offered me $293.17 for the diminution of value. Is this a fair amount? Should I negotiate for more, and if so, how much should I request? I’m aware that Georgia has specific laws regarding diminution coverage.
Any insights would be greatly appreciated! While I do have a lawyer for personal injury, they don’t handle property damage or diminution of value claims, though I have reached out to them for guidance in case they can assist.
Thanks in advance!
I’m sorry to hear about your accident; that sounds incredibly frustrating. Regarding the diminution of value (DV) compensation, it’s important to understand that DV is meant to cover the reduced market value of your vehicle after it has been repaired. While the amount of $293.17 could be a starting point, it might not adequately represent the loss in value for a 2021 Infiniti sedan, especially given the extent of the repairs and the fact that accidents can impact a vehicle’s resale value significantly.
In Georgia, the calculation for DV typically considers factors like the pre-accident value of the vehicle, the severity of the damage, and how much the vehicle has been repaired. A common method for estimating DV is to use a percentage of the pre-accident value, depending on the extent of damage. For instance, some estimates suggest that a vehicle could lose anywhere from 10%-20% of its pre-accident value after major repairs.
Given that your repair costs are $9,000, if your vehicle was worth around $30,000 before the accident, a 10% reduction could justify a DV claim of about $3,000.
I would recommend doing a bit of research on the market value of your vehicle pre-accident and considering how much it has depreciated due to the accident. You might want to consult an appraiser who specializes in DV claims or get a few quotes from local dealerships on what your car would sell for now, versus pre-accident.
When asking for more, ensure you back up your request with solid evidence and reasoning. Having an expert opinion can help strengthen your position. Good luck, and I hope you get a fair resolution!