What is the law regarding diminished value?
“Diminished value” is the expected loss in the value of the vehicle resulting from the fact that it has been involved in an accident in addition to the cost of physically repairing the vehicle. Maine has no specific law addressing the payment of diminished value, but the Maine Supreme Judicial Court has ruled that diminished value of a vehicle is not covered by your own insurance policy which only provides coverage to repair or replace the vehicle. If the loss in value can be clearly established when the vehicle is actually traded, some insurers will extend coverage to a third-party claimant.
