If your vehicle is in an accident, most insurance companies will only pay the vehicle’s repair cost (assuming it is not totaled). What about the diminished value of the vehicle? The resale value of a vehicle that has been involved in an accident is considerably less than one which has not.
Ohio has recognized a claim for the diminished value of the vehicle. However, this is not always an effective remedy:
- The diminished value is determined at the time of the accident, and hiring an expert for this purpose can be expensive.
- The insurance company often disputes the figure.
- The majority of people find it is not worthwhile to pursue a diminished value claim unless the vehicle is an expensive one with significantly diminished value.
- The insurance company will not pay to repair the vehicle until the diminished value claim is resolved. Most people cannot go for an extended amount of time without a vehicle to drive.
- Many uninsured/underinsured motorist policies exclude a claim for diminished value.
Be prepared to fight for the diminished value of the vehicle if you believe repair cost only compensation is inadequate and unfair.