Diminished value claim and rental reimbursement

[Buickbummer]

Hello. I was the victim of a hit and run which caused significant damage to my new vehicle. The other driver was caught and determined to be at fault. My vehicle is being repaired but it is going to take a long time. I do not have rental insurance on my policy but I have had to rent a vehicle for a few weeks. We live in Michigan.

1) Can I get reimbursed for my rental costs from the at fault driver's insurance company (Progressive)?
2) How does a diminished value claim work and can I file one with the at fault driver's insurance company?

Thanks

 

[fed up]

Do you have a claim filed against the other drivers carrier? Does he even have insurance? If so his carrier should be handling the claim and providing you with transportation. If he has no insurance your carrier will cover the repair, less a reduced deductible in some cases, but not a rental because you opted not to properly insure yourself. You can sue the other driver for the cost of repairs and a rental once your bill is finalized but you might find a real deadbeat who declares bankruptcy

 

[WinoBlues]

Hello. I was the victim of a hit and run which caused significant damage to my new vehicle. The other driver was caught and determined to be at fault. My vehicle is being repaired but it is going to take a long time. I do not have rental insurance on my policy but I have had to rent a vehicle for a few weeks. We live in Michigan.

1) Can I get reimbursed for my rental costs from the at fault driver's insurance company (Progressive)?
2) How does a diminished value claim work and can I file one with the at fault driver's insurance company?

Thanks

Is your agent there in Michigan helping you? What are they saying?

 

[adjusterjack]

How does a diminished value claim work

I got it wrong so I've deleted my comments about potential recovery for DV as there isn't likely to be any.

I'll leave the definition and the 50 state guide for those who are interested.

Diminished value is the difference between what the car was worth before the damage and what the car is worth after the damage.

Dealers and private buyers typically pay less for a repaired car than for a car that's never been in an accident. Worse, if you end up with a "rebuilt" title that also places a stigma on the car's value.

DIMINUTION OF VALUE IN ALL 50 STATES (00165375).DOC (mwl-law.com)

It's worth noting that, for first party claims against one's own policy the "Insurers’ obligation under auto policies to “repair or replace” did not require payment for diminution in value of vehicle as result of accident, where provisions expressly limited coverage to lesser of actual value or cost of repair. Driscoll v. State Farm Mut. Auto. Ins. Co., 227 F. Supp.2d 696 (E.D. Mich. 2002)."

 

[Allen Trent]

Do you have a claim filed against the other drivers carrier? Does he even have insurance? If so his carrier should be handling the claim and providing you with transportation. If he has no insurance your carrier will cover the repair, less a reduced deductible in some cases, but not a rental because you opted not to properly insure yourself. You can sue the other driver for the cost of repairs and a rental once your bill is finalized but you might find a real deadbeat who declares bankruptcy

Michigan is a no fault state. Unless the cat was parked when hit(property damage), your own insurance provides all collision coverage for your own car. The max you can collect from the at fault party is your deductible or if uninsured $3000(limited property damage/mini tort). This $3000 limit is new after being only $1000 for many years

If the at fault driver was driving without insurance, the no fault limits go away & the other insurance company could collect up to the entire loss because the at fault was not carrying mandatory no fault coverage.

 

[Allen Trent]

Was your car parked or being driving at the time?

If being driven, your insurance provides coverage for your car. You can only collect a max of $3000 in Michigan from the at fault party or their insurance company (if insured was carrying the limited property/mini tort endorsement on their policy). You can only collect for damage you were not covered for like your deductible or for cars that had no collision coverage on it