Most insureds have expectations that they will be restored to pre-loss conditions for covered losses. However, the diminution in value of vehicles following an accident may not be included in coverage.
According to the FC&S Bulletins, "Diminution of value is the difference in market value immediately before and after damage to property. The cost of repairs is generally accepted as the measure of damages, although loss of value may act as evidence of damage."
As the following cases demonstrate, much of the debate centers around the meaning of the phrase "repaired or replaced property with other of like kind and quality."
