Found an issue on this page? Let us know and we will look into it as soon as possible.
Is a diminished value claim allowed in NY when the other party has accepted full responsibility for an auto accident?
Anonymous5 views5 answers
Our car is 3 years old and had a Keely Blue Book value of $26,000 prior to the accident. The repairs from the accident cost $14,000. Their insurance company cited Franklin Corp v. Prahler as stating that diminished value claims are not allowed for cars that do not appreciate in value. However, in our case, the car is still very new and their was such significant damage that even after being repaired, the true market value has decreased because of the market prejudice against cars that have had significant repairs. Therefore, the car has not been fully returned to its pre-accident state because the market value has been further diminished. I then conclude under the principles of Restatement of Torts § 928 that we are entitled to the diminished value after repairs I order to be made whole.
In NY, you are entitled to the cost of repair, or the market value if the car was totalled, whichever amount is LESS. NY does not recognize "diminished" value as an additional element of damages, even if you drove out of the showroom an hour ago
