Property Damage in Automobile Accidents
When someone is injured in an automobile accident there is usually substantial damage to their automobile. When this happens the person at fault is always liable for damages to the automobile in addition to any personal injuries caused by the accident.
Recovery for property damages can be two forms. First, the at fault driver can be liable for the loss of value to the vehicle. Loss of Value is the difference between the Fair Market Value at the time of the accident and the Fair Market Value after the accident. Fair Market Value is the value of the vehicle if that vehicle was sold to another person and is not the same as the amount of money still owed on the purchase loan for the vehicle. For example, if the car has a value of $5,000 if sold and the owner of the car owes $8,000 on their car loan, the Fair Market Value of the car will be $5,000 and not $8,000. In this situation the injured person is “upside down” on their car loan and they will not be able to recover the remaining $3,000 that is still owed on the loan.
If the vehicle has been totally destroyed in a car wreck, then the not at fault driver can recover the Fair Market Value of the vehicle before the accident occurred without considering the Fair Market Value of the vehicle after the accident because they have a total loss.
Second, if the above damages will not adequately compensate for the property damage to the vehicle, then that person can recover the cost of repair to the vehicle. Cost of repair must be reasonable. For instance, it would be unreasonable to request the cost to completely rebuild a destroyed automobile. Cost of repair damages include the repairs that are necessary to restore the car back the condition it was in before the accident. It includes all of the labor cost and the cost of transporting the car to and from the place to get repairs (cost of a tow).
An injured person may also get loss of use damages from the defendant if they are claiming cost of repair damages. Loss of use damages in an automobile accident is the cost of a rental car to replace the vehicle while it is being repaired. Loss of use damages are not always available. For instance, loss of use is not available if there has been a total loss of the vehicle or if they are claiming loss of value damages.
In some cases an injured person may get both loss of value damages and cost of repair damages. In such a case, the repairs to the vehicle do not adequately restore that vehicle to the Fair Market Value of the vehicle before the accident. Thus, in addition to the cost of repairs the injured person will be able to recover the difference in value of the vehicle before the accident and the value of the vehicle after repairs.
Many people ask about recovering diminution in value of their damaged vehicle. In Texas, diminution of value is covered under a third party insurance claim. Diminution in value is actually just recovery for the difference between the value of the vehicle before the property damage and the value of the vehicle after it is repaired. After all, a car that has had substantial repairs after a motor vehicle accident will not be worth as much as a similar vehicle that never had those damages or repairs to begin with. In Texas, there is no official formula for calculation of diminution of value of a vehicle. Additionally, if diminution of value does not fully compensate for the loss, some courts will allow restoration damages.
More Auto Accident Information
- Property Damage in Auto Accidents
- Admissibility of Seat Belt Evidence
- The Rules of the Road
- Settling a Case with a Minor
- How Accident Claims Work
- Insurance Claims Dos & Don'ts
- Auto Accident Injuries & Compensation
- Dealing with Insurance Carriers
- Do you need an attorney after a car accident?
- How Much Money Is My Car Accident Case Worth?
- Mercury Insurance Claims
- State Farm Insurance Claims
- Allstate Insurance Claims
- Farmers Insurance Claims
- Geico Insurance Claims