Diminished Value laws in Tennessee 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: No
Statute of Limitations: 3 Years
In Tennessee, the statute of limitation on claims involving damages to property (in this case a car) is three years. Accident victims have three years to get compensation for the diminished value of their wrecked car before their claim expires. Time is not the only hurdle victims face accident victims face, almost any settlement with an opposing party will contain an exclusion clause which restricts a victim’s ability to make additional claims such as diminished value. Claims for diminished value need to be made as soon as you have an estimate of the repair cost.
Tennessee does not allow First party diminished value claims. First party claims are when you are the at-fault party in an accident, or if the damage was caused by something other than a collision.
FIRST-PARTY DIMINISHED VALUE TENNESSEE LAW:
In Black v. State Farm Mutual Automobile Ins. Co., 101 S.W.3d 27 (Tenn. App. 2002), the Tennessee Court of Appeals refused to apply diminution of value in Tennessee automobile policies finding the wording unambiguous and limiting the insured to repairs.
To learn more about diminished value law, and Statute of limitations for all 50 States visit: NADVA
