Contentious Issue of Diminished Value
Thursday, July 25th, 2002 AutoSeveral class action suits have been filed on behalf of policyholders in jurisdictions throughout the country based upon the theory that once an automobile is repaired, the value of the vehicle is lessened. The lawsuits seek compensation for the alleged loss in value, and often are woven into class action litigation concerning aftermarket parts. Insurers have countered that if a vehicle is properly repaired, it generally does not lose value, even if it has been in an accident. Though there are well over 60 million automobiles in the country that have been repaired as a result of accidents, none of the price appraisal guides, such as the NADA Official Used Car Guide or Kelley’s Blue Book, consider prior accidents when publishing the value of used cars.
