It’s time for the next installment of Holcomb Dunbar law series “Insurance Law from A to Z.” This was put together by our litigation group who practice in the insurance law arena. Of course, if you have questions about these or any other topics please do not hesitate to contact us.
This week’s installment – Diminution of Value
Loss of a vehicle’s value due to being in an accident is a recoverable damage. If despite the repairs there remains a loss in value, that deficiency is recoverable. Potomac Ins. Co. v. Wilkinson, 57 So. 2d 158, 160-61 (Miss. 1952).
The measure of loss to an automobile damaged but not destroyed by a collision is the difference between its reasonable market value immediately prior to the collision and its reasonable market value after all reasonable and feasible repairs have been made. Calvert Fire Ins. Co. v. Newman, 124 So. 2d 686, 688 (Miss. 1960). See also Blakely v. State Farm Mut. Auto Ins. Co., 406 F. 3d 747, 752 (5th Cir. 2005). (The Fifth Circuit in applying Mississippi law distinguished Wilkinson
on the basis that the policy language in the present case expressly limited the definition of “repair” and “cost of repair”).
The information contained in this post is for general guidance on matters of interest only. The application and impact of laws can vary widely based on the specific facts involved. Given the changing nature of laws, rules and regulations, there may be omissions or inaccuracies in information contained in this report. Accordingly, the information in this report is provided with the understanding that the authors are not herein engaged in rendering legal, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with legal or other competent advisers. Before making any decision or taking any action, you should consult with your counsel or the attorneys at Holcomb Dunbar.