When a negligent driver causes an accident, the at-fault driver is liable for diminished value in every state except Michigan. A negligent defendant has a duty to make the plaintiff “whole” again after an accident and this includes compensating diminished value of the plaintiff’s vehicle.
For example, the plaintiff in a personal injury lawsuit for a car accident had a vehicle initially worth $30,000. It was only one year old and in very good condition prior to the accident, so the current market value at the time of the accident was about $25,000. The defendant caused damages requiring $4,000 worth of repairs. The plaintiff could not only claim compensation for the costs of those repairs but also the difference between the car’s $25,000 value at the time of the accident and the car’s post-repair value. If the car only had a market value of $16,000 after the repairs due to the extent of the damage, the plaintiff could claim the difference of $9,000 in diminished value.