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Diminished Value Claim | Can I Sue My Insurance Company?
I have been insured with State Farm for over 20 years and in September 2011 my truck was stolen and wrecked.
The guy that stole it was caught and is in jail awaiting to be sentenced (multi felonies in the past).
State Farm paid to have my truck repaired $13,200 but I was told that I can sue my insurance company for diminished value which is over $7,000 according to estimates. Please Help
Answer to Diminished Value Claim | Can I Sue My Insurance Company?
Well, you have a first party claim, which means, for the purposes of this question, that you are bound by the terms of the policy. Most auto policies disclaim diminish value claims (as "economic losses"). Most auto policies narrow their scope by limiting the insuring agreement. The will define coverage by saying that they will only pay to "repair or replace." That definition essentially stops your claim for diminish value.
Of course, you can go against a third party... here the thief. There is probably no recovery there but you can make a third party claim.
See more about diminish value claims (also referred to as diminution in value claims) here.
Auto Accident Claims
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