No way! My wife's NEW car-hit just hours after purchase!

Last year my wife's 1999 Toyota minivan with over 250,000 miles on it was near the end of its life. The children used to call it the "Swag Wag", and it was really a 2nd home for car pools, sports events, and lots of road trips for nearly 15 years. So as all our children have grown and even our youngest is mobile, with a driver's license, I decided she needed/deserved a new ride. 

 

      So I bought her a Tesla-for those of you who don't know, it is electric and a beautiful piece of technology.

 

 

 

 

       She took possession of the Tesla at 1:00pm and then at4:30pm, while she was driving our daughter and her friend to volley ball practice, a woman ran a stop sign (texting and driving) and hit the side causing substantial damage.

 

       Because Tesla's are new technology the repair cost was sizable-no problem because the at fault driver stepped up and accepted responsibility- unfortunately it took over two months to fix the car. 

       The first time we called the insurance company, they initially refused to pay for the reduction in value due to its having been in an accident.  

 

        This type of damage is called diminution in value. It is rare for insurance companies to offer to pay diminution in value as a damage after your car has been repaired. To be fair, small fender benders with minimal damage do not result in much, if any, reduction in value. Diminution in value is a damage appropriate when a car, usually worth over $10,000, had sufficient repair work following an accident which would cause a reasonable buyer to offer less than a similar car with no previous damage. 

 

        In the end we had to hire an expert to canvas the market place to prove diminution in value and the insurance paid. And my wife loves her NEW car! If you have a new car or a used car that is fairly new or has decent remaining value and it is in a wreck make sure you make a diminution in value claim. 

 

Thanks,

 
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