Property Damage: Diminution of Value

After a motor vehicle accident, dealing with property damage to your vehicle can be a frustrating task.  You may wonder how you will be compensated for the damage to your vehicle.  Are you entitled to recover the cost of repair?  The difference in market value of your vehicle immediately before and immediately after the accident?  The difference in market value of your vehicle immediately before the accident and immediately after your vehicle has been repaired?  Read below to find out.

Measuring Damages

The primary goal of a damage award is to make an injured party whole again.  The primary measure by which to calculate a property damage award is the difference in market value of your vehicle immediately before and immediately after the accident.  This is known as gross diminution in value. The cost of repair can also be used as a measure of damages, provided that the cost of repair is not more than the gross diminution in value.  One cannot recover both the cost of repair AND the gross diminution in value of their vehicle, as such would amount to a double recovery.

If a vehicle is valued at less than it was preaccident after it has been repaired, the injured party has not been made whole.  For this reason, one can recover the cost of repair AND the difference in market value of the vehicle immediately before the accident and immediately after the vehicle has been repaired.  The difference in market value of your vehicle immediately before the accident and immediately after your vehicle has been repaired is known as residual diminution in value.  A recovery of cost of repair and residual diminution in value is permitted because without such a recovery, one would not be made whole.

Are you looking for a Cleveland auto accident attorney that will work for you? Contact Nager, Romaine & Schneiberg with your questions by filling our our contact form, or call toll free (855)GOT-HURT.