How do You Prove Diminished Value After a Car Crash?

Sometimes after an accident, you don’t have the money to rent a replacement car while your car is getting repaired. Also, if your car is “total loss” and you are waiting weeks for the insurance company to pay for the loss of your car, you might have the funds to pay for a rental. In both scenarios, if you did not receive a rental car, you can ask for “loss of use” damages, for not being able to use your car. If your car was fixed, but sustained extensive damages, you can also ask for “diminished value” damages to your car. 

The Nevada Supreme Court has said that a party is entitled to have the jury consider her “loss of use damages.” See Dugan v. Gotsopoulos, 117 Nev. 285, 289, 22 P.3d 205, 208 (2001).  In Dugan, our high court held, that the lower court’s refusal to permit a party to testify as to rental car costs and its refusal to permit the jury to consider loss of use damages, was reversible error. Id. Moreover, courts have permitted the party to testify about rental car rates as long as that person had some basis for the valuation. Id. Further, loss of use damages may also be awarded for the inconvenience of loss of use based on individual circumstances, to which the party can testify. Id.  

Whether the aggrieved party actually rents a car is irrelevant, because she is still entitled to have the jury consider her loss of use damages. Id. What a reasonable amount to claim for loss of use damages?  Generally, insurance companies will accept $20.00 per day for a rental car. If you have a luxury car, you can ask the insurance company to consider how much it would cost to rent a comparable replacement car. 

In addition to “loss of use” damages, Nevada law allows for claims to be made, as a result of the diminished value of your repaired property.  See Mort Wallin v. Commercial Cabinet Co., 105 Nev. 855, 857 (Nev. 1989). In Mort Wallin, there wasn’t enough evidence presented to the trial court as the actual diminished value of the property at issue. But, the Nevada Supreme Court determined that “diminished value” is a recognizable loss when property has to be repaired. 

Other courts in the U.S. have also determined that “diminished value” is a recognizable loss. A Georgia case found that virtually, as a matter of law, wrecked cars have diminished value. See Mabry v. State Farm, 274 Ga. 498, 556 S.E.2d 114 (2001). A District of Columbia case has also done a survey of the law on this issue. See American Service Center Associates v. Helton, 867 A.2d 235 (D.C. App. 2005). Similarly, an Oklahoma Court has said, the overwhelming weight of legal authority supports the rule that damages are not limited to the cost of repairs actually made, where it is shown that repairs failed to bring the property up to the condition it was in prior to the damage. See Brennen v. Aston, Jr., 2003 OK 91. In such cases, the cost of repairs made, plus the diminution in value of the property, will ordinarily be the proper measure of damages.

Where in town can you get a Diminished Value Report? Las Vegas Auto Appraisers can be reached at 877.868.9123. Wreck Check Car Scan Centers is another provider of diminished value reports. Their phone number is 800.762.2671. Both have reputations on assessing the diminished value of your car. 

Next time, we will talk about alternative theories of medical causation in personal injury claims.