When you get into a car accident in Florida, the damage to your vehicle can be significant. Even after repairs, your car may not have the same value as it did before the accident. This is where diminished value car insurance comes into play. In this article, we will discuss everything you need to know about diminished value car insurance in Florida.
What is Diminished Value Car Insurance?
Diminished value car insurance is an optional coverage that pays for the difference in your car’s value before and after an accident. This means that if your car is worth $20,000 before the accident and only $15,000 after the repairs, diminished value car insurance will pay you the $5,000 difference.
It is important to note that not all car insurance policies include diminished value coverage. You will need to add it as an optional coverage to your policy.
How is Diminished Value Calculated?
The calculation of diminished value can be a complex process. It involves considering several factors, such as the age, make, model, and mileage of the vehicle, as well as the extent of the damage and the quality of the repairs.
Insurance companies use different methods to calculate diminished value. Some use a formula based on the vehicle’s original value, pre-accident condition, and the severity of the damage. Others may hire a professional appraiser to assess the car’s value before and after the repairs.
Is Diminished Value Covered by Florida Law?
Florida law does not require insurance companies to provide diminished value coverage. However, if you have added this coverage to your policy, your insurer must honor it.
It is also important to note that Florida law allows you to pursue a diminished value claim against the at-fault driver in addition to your insurance claim. This means that you can seek compensation for your car’s diminished value from the other driver’s insurance company, even if you have already received payment from your own insurer.
How Much Does Diminished Value Car Insurance Cost in Florida?
The cost of diminished value car insurance in Florida varies depending on several factors, such as the car’s make and model, the extent of coverage, and the insurer. On average, adding this coverage to your policy may cost you between $25 and $100 per year.
When Should You Consider Diminished Value Car Insurance?
You should consider adding diminished value car insurance to your policy if you own a newer or high-end vehicle that is more likely to lose value after an accident. This coverage can help you recoup the lost value of your car, especially if you plan to sell it in the future.
It is also worth noting that some car dealerships may require a diminished value appraisal before accepting a trade-in or selling a repaired vehicle. Having this coverage can help you provide proof of the car’s value before and after the accident.
Conclusion
Diminished value car insurance can be a valuable coverage to have if you own a newer or high-end vehicle in Florida. It can help you recoup the lost value of your car after an accident and provide peace of mind when selling or trading in your vehicle.
