It’s time for the next installment of Holcomb Law Group 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”).
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