Diminished Value

Diminuation of Value represents the lost value of a vehicle after it has been repaired.  The law says that once your car is fixed you can still recover the loss in value that represents its “diminished value.”  This issue usually arises when one’s car has been damaged in an accident and is repaired.  Eventhough the car is fixed, it remains a car that has been previously wrecked in an accident.  CarFax has made an industry over reporting damaged cars that are offered for sale. http://tiny.cc/ajlljw The idea is that no one wants to pay full value for a car that has been wrecked.  So, “diminuation in value” is a measure of damages the contemplates this loss in value.

In Georgia, the law provides no set formula to determine this figure.  It is a subject of negotiation between the car owner and the insurance company.  Typically, the insurance company offers a figure based upon a formula it determines is accurate.  If a compromise cannot be reached, the owner always has the option to file a lawsuit in magistrate court. http://tiny.cc/mmlljw Otherwise, a useful tip is to hire an automobile appraiser.  If the difference between the insurance company’s offer and your demand is $750 or more, it could be money well spent.

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