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)."
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
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.