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Diminished value claim for less than 2 month old vehicle?

by James

My 2009 Toyota RAV4 was hit by a driver running a red light. My car was hit on the driver's side bumper and alloy front wheel. The car had to be towed due to damage to that wheel. The car is brand new, less than 1 1/2 months old and has 760 miles on the odometer.

I will be dealing with the other driver's insurance company and I'm wondering if I should pursue a diminished value claim. Since this happened over the weekend, the body shop has not yet had a chance to examine the car.

I feel that since the car is so new, I should get something for diminished value. I may want to sell it and replace it with a new car, since this one is no longer new. Do you think I have a chance with the insurance company?



Hello James,

You hit the nail on the head! And actually, I am very glad you are asking this question. Most insurance policies (if not all of them) exclude diminished value claims from coverage. However, some states have deemed these clauses unenforceable. This has created some confusion regarding which states allow the claim and which ones do not.

As you point out, this would not be a first party claim (you making a claim against your own insurance company), but a third party claim (you against the insurance company that hit you). This is important here because you do not have an insurance policy (or clauses) with that specific insurance company, meaning, you are owed the diminished value.

Many insurance companies will tell you that this is not an allowed claim and/or that you cannot recover. This is incorrect. Please visit: for more information about how to handle this type of claim.

Good Luck,

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