Which state’s laws support claims for diminished value?
There is confusion as to which states demand, by case law, payment of diminished value claims. To sort it out, we must understand the difference in first party insurance claims and third party insurance claims. First party insurance claims are when you damage your car and your own insurance company is paying the claim. Third party claims are best understood to be when your car is damaged by a negligent driver and their insurance company is stepping up to pay your claim. Generally speaking, since you are allowed to recover all of your losses when a wrong has been committed against you (such as when your car is damaged by a careless driver through no fault of your own), it is generally understood that all state courts support claims for diminished value so long as the loss can be proven. These third party claims would be civil in nature and based in tort law. First party insurance claims are not governed by tort law, rather by contract law. Under contract law you can recover if your insu
