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Tennessee’s Law on Loss in Value to Your Damaged Car

One of the most frequently asked questions from someone who is involved in a car accident is how to repair or replace their damaged vehicle and get top dollar for it.  How can you maximize the amount of compensation that you receive on your car when it has been damaged through an act of automobile negligence?

Tennessee and most states recognize the legal concept of loss in value to your property or damaged vehicle.  This loss in value is additional money that could be available to you if your car is damaged and the insurance company does not repair or restore you back to the actual fair market value of your vehicle.  This is money that you could receive which is above and beyond the basic costs for repairs to your vehicle and could help fully compensate you under the law for future losses if you had to resell or trade in your vehicle.

When your vehicle is damaged in an automobile accident under Tennessee law, the insurance company should restore your vehicle to its fair market value and compensate you this amount.  If this cannot be done by repairing your vehicle, then you are entitled to additional money for the reduction in the fair market value as a result of the occurrence, per Mason v. Tennessee Farmers Mut. Ins. Co. What this means is that if the money paid for the repairs to your vehicle does not fully compensate you and include what you could have received if you sold your car on the market at the time that it was damaged, then you could be entitled to additional money in pocket for this loss in value to the vehicle.  However, if the insurance company does pay an adequate amount to you to put you in the same monetary position that you were in prior to the damages, then this argument may not apply.

Knowing how to and when to ask for the legal compensation and other damages that you are entitled to under the law is a way to get fully compensated for your damaged property and other losses following a car accident in Memphis or anywhere else in Tennessee.  The loss in value to your vehicle is typically not something that the insurance company will automatically offer unless you ask for this compensation and understand what it means.  The Tennessee auto accident attorneys at Nahon, Saharovich & Trotz will fight for all legal compensation available to you on your legal claim and can provide the legal advice to help you successfully navigate this area of your automobile claim.

However, you may also suffer injuries and other losses as a result of automobile negligence.  At the law firm of Nahon, Saharovich & Trotz, our lawyers and staff understand that an automobile accident may affect every aspect of your lives – from your damaged property, suffering injuries and pain and suffering, and incurring medical bills, lost wages, and other out-of-pocket expenses.  If you are injured or have questions regarding your claim, please contact our lawyers at 1-800-LAW-4004 to better assist you.