Nashville, TN asked in Insurance Defense for Tennessee

Q: What is the policy or law that requires insurance companies, in the state of TN, to pay diminished value?

The insurance company told me "In Tennessee the measure of damages is either repair costs OR the difference in market value immediately before the accident and that immediately after the accident. It is not both. Since you have elected to receive the cost of repairs, then there can be no recovery for any decrease in value. Please reference GEICO v. Bloodworth, 2007 WL 1966022 (Tenn.Ct.App. 2007)."

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1 Lawyer Answer
Tim Akpinar
Tim Akpinar
  • Little Neck, NY

A: You must check with a Tennessee attorney as to the statutory authority you describe. However, your question remains open for five weeks. That concept is not exclusive to Tennessee. It is an accepted practice of property damage claims processing virtually nationwide. The carrier pays the collision shop parts and labor upon approval of work by their property damage adjuster. There is not an additional payment for loss in value. If the vehicle is declared a total loss, then the repair costs generally cease to be an issue. It looks like they gave you a case law citation as well. Good luck

Tim Akpinar

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