Originally Posted by robpp
Check your state laws about this "diminished value"
it protects from the negative results of a carfax and such.
the stealer uses carfax when you trade so it WILL affect value.
make sure insurance pay you that 'diminished value' if you can collect it.
EACH state is different. ALSO most times you need to do it through YOUR company.
Checking state laws is by far the first thing you should do. No sense getting into an argument over something you are not entitled to, or missing out on something you are due.
There are different legal opinions on the matter. It all comes down to contract law (your policy being the contract), and the contracts are not the same in each state.
At least up until the time I retired, we did not pay diminished value in N.Y. The reasoning was that the contract did not cover the value of a car that was not a total loss. It covered the cost of repairing the car to its pre-accident condition. If a car is repaired properly, the diminished value has nothing to do with the physical car.
I know that some people would go to court to try to get something for diminished value. I testified in some of those cases. The cases were always dismissed.
Things might have changed by now as I have been happily retired for going on ten years.