First party diminished value claims in Florida


A first party diminished value claim is an owner’s claim against his own insurance provider. The sad reality today is that after an accident, it’s almost impossible to retain the car’s pre-accident value.
As a general rule, first party diminished value claims are not recognized under Florida law.
If you suffer an accident and there is no third party at-fault driver, then you probably wouldn’t be able to recover diminished value damages in your claim.
In Florida, only third party diminished value claims are recoverable.

Despite the general prohibition against first party diminished value claims in Florida, a first party claim may be allowed in a very specific situation.
For example if your vehicle is damaged as a result of the fault of a third party driver, who is uninsured, your insurance plan you may be able to recover on a diminished value claim against your uninsured motorist policy, so long as the diminished value claim could have been reasonably asserted against the third party driver and you have uninsured motor coverage under your insurance plan.

Also a damaged caused by another person may be a legitimate diminished value claim that is worth pursuing.

©by LostValue Law, P.A  (888)-717-5387 

Proving your diminished value

First step is to prove you have lost some value that the insurance company is liable to pay. You will need to determine what types of diminished value claims you may have.

It is reasonable in most cases to presume that there is some amount of inherent diminished value by virtue of the accident appearing on your vehicle’s record.

One exception is when your car already had cosmetic and/or mechanical defects before the accident and the post-accident repairs fixed some of those defects or added enough improved value to make the car more valuable in a sale than the value without the repairs.
This would happen on vehicles where you have caused prior damage the new repairs fixed or the car is old and adding new parts makes the car more desirable.
You must understand that this exception is extremely rare.
Most cars with existing damage or are old and worn will end up being totaled by the insurance company.

After all repairs by the insurance company made, you should make sure your receipts for the work include every piece of information including what work was performed, what work was advised by the mechanic but not performed at the request of the insurance company, what parts were installed and whether they were aftermarket or OEM parts. The use of aftermarket parts or not performing every service the mechanic wanted to perform is not absolute evidence of lost value but you need this information to assess potential claims.

Last step after having this information it is to start gathering valuations on the vehicle to determine how much value is lost.

©by LostValue Law, P.A  (888)-717-5387