My car, which was written off (but repaired), has lost value - can I claim for this loss from my insurer? | Ask Honest John

My car, which was written off (but repaired), has lost value - can I claim for this loss from my insurer?

In December 2016, I was the victim of a rear end collision. The third party driver accepted full responsibility. My car is a 2008 Citroen C3 and the damage was such that my insurers wrote it off. However, as it was low mileage and in good condition (before the accident) I decided to have it repaired. The cost was around £700, which was approximately 50 per cent of the insured value. The third party's insurer reimbursed my excess and I understand that they reimbursed my insurer the cost of the repairs. I'm now looking to trade in my car and I'm finding, understandably, that the crash has reduced its value. Can I ask my insurers to reopen the case so that I can claim for the reduction in value? I've since changed insurers, so, if the claim can be reopened, would I be better off contacting the third party's insurer direct?

Asked on 13 February 2018 by Richard Worsdall

Answered by Honest John

Diminution in loss is something you can claim for and is covered under the case law Payton v Brooks. However, I highly doubt that your car has diminished in value. The car is already at a low value, so the effect on the value because it's been involved in an accident is virtually nil. Your car's trade in value is about £250-£500, irrespective of the previous damage. Plus, you chose to keep it despite it being written off. This would negate any claim.

The action of claiming for diminution in loss is a complex area, so there are a number of things that need to be in place for it to be successful. If your claim has been settled in full and final settlement you would be inhibited from taking it further. If it filled the correct criteria, you could claim for diminution in loss. Yet, your particular claim fails in almost all respects.

Tags: insurance write offs trade-in values total loss

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