Diminished Value Case In Arizona For Unsold Vehicles
Auto insurances companies are ruthless.
You would have never guessed this from their marketing though, would you?
But I can prove just how heartless they can be.
Consider the recent diminished value case in Arizona — Oliver v. Henry right here in Phoenix:
The Background Story
Mr. Oliver had gotten in an auto accident with Mr. Henry in Scottsdale.
Mr. Henry was the at-fault driver who caused the accident.
Mr. Oliver’s vehicle was a brand new Jeep Wrangler that he bought for over $32,000 just a few months before the accident.
It cost Mr. Henry’s insurance company, State Farm, $15,000 to repair the Jeep.
Shortly after repair, Mr. Oliver had his Jeep appraised and took it to Auto Nation for its trade-in value.
He was told they could not offer him more than $10,000. It also couldn’t be sold on their lot because of the repairs and a record on its car accident history.
Auto Nation also told him they would have offered him $18,000 had it not been in an accident.
So, Mr. Oliver requested State Farm to pay him this loss of $8,000.
State Farm said no.
Taking The Case To Court
Mr. Oliver hired an attorney for an initial consultation. After discussing their options, they decided to fight.
But State Farm fought the case all the way through the Arizona Court of Appeals.
The fact that Mr. Oliver experienced a loss in the value of his vehicle after an accident, and the fact that State Farm refused to compensate him fairly also prompted Mr. Oliver and his attorneys to fight back.
Though the vehicle was repaired, State Farm balked at the idea that the victim experienced any actual or provable loss in the vehicle’s value since he did not sell, exchange or otherwise dispose of the vehicle.
So how did it end for Mr. Oliver?
Fortunately, the Arizona Court sided with Mr. Oliver over State Farm.
They held that, even though the victim retained the vehicle and even though the vehicle was repaired, the accident victim still suffered an actual and provable financial loss to the vehicle’s total value.
While we don’t consider this an earth-shattering conclusion, it shows how difficult insurers make it for victims of accidents to be recover their damages, obtain fair compensation, and to bring back normalcy to their lives as they were before the accident.
Is State Farm really your “Good Neighbor”?
Worried About Diminished Value? Call Us
We deal with cases like this all the time.
We know how insurance companies like State Farm play the game, and our attorneys at Thompson Law Firm can play with the best of them — on your behalf — nothing more, nothing less.
Anytime insurance is being difficult with you about the true value of your car, just give us a call at (480) 634-7480 for a free consultation, or contact us here.
We’ll advise you on the next steps and first encourage you to resolve this on your own. But if the other side digs their heels in and you’re not sure what to do next, we will step in and handle this.