Diminished Value Illinois Law

Diminished Value Illinois laws can be a bit confusing, here’s the info you need get your your vehicles loss of market value after an accident:

3rd Party Claims Allowed: Yes
1st Party Claims Allowed: Depends on Ins. Policy
Statute of Limitations: 4 Years

In Illinois, the statute of limitation on claims involving damages to property (in this case a car) is four years. That means that a victim will have four years to get compensated for the diminished value of a wrecked car before that claim expires. But time isn’t the only hurdle victims face. Almost any settlement with an opposing party will contain an exclusion clause restricting a victim’s ability to make additional claims such as diminished value. Therefore, if a victim doesn’t make the claim up front, it is liable to be lost forever.

FIRST-PARTY DIMINISHED VALUE LAWS IN ILLINOIS:

The Illinois Court of Appeals in Traveler’s Ins. Co. v. Eljer Mfg., Inc., 757 N.E.2d 481, (Ill. 2001) found that there was coverage for property damage even though there was no physical injury but there was evidence of a diminution in value. Also see, Sims v. Allstate Ins. Co., 851 N.E.2d 701, (Ill. App. 2006), where the court held:

“To expand the ordinary meaning of ‘repair or replace … with other of like kind and quality’ to include an intangible, diminished-value element would be ignoring the policy’s language or giving the policy’s text a meaning never intended.”

To learn more about diminished value laws, and Statute of limitations for all 50 States visit: NADVA