Legal Question in Insurance Law in Texas

Diminished Value? What Can I get ?

I was involed in an auto accident in October of 2004. I was hit by an uninsured motorest with no license to drive in the united states. I claimed under my uninsured motorest, and my vehicle was repaired at a cost of $7,600. However, there was frame damage,at least 10 hrs of repair on the frame alone. Now, I am trying to get diminished value from my insurance company.(The money difference between before and after the wreck) Since I am being treated as a claiment and not a policy holder, I can get diminished value in the state of TX. I have three letters from auto dealerships stating my 2004 Xterra is now at less than 50% of the trade in value. My question is do I have to accept my insurance's offer and if no, can I sue them to get full value of my car,plus lawyer fees? Is there anything that I can say to the insurance co. to make them pay the fair price? Doesn't the state of TX pay for the uninsured motorest claims? Can I get money from the state? Please help me get a fair deal! Thank you!


Asked on 2/18/05, 12:10 am

1 Answer from Attorneys
Dan Street Street Law Firm

Re: Diminished Value? What Can I get ?

Current Texas law does not allow for the collection of diminution of value on a first-party claim (that is, one against your own insurance company), even if you are a "claimant" on an uninsured motorist ("UM") claim. Current law does allow for collection of diminution of value on third-party claims (that is, those against another person's insurance company), but carriers are very resistent to paying this kind of damages and a lawsuit is often necessary. No, the State of Texas has nothing to do with paying UM claims and you may not collect damages from the state for property damage or injury caused by an uninsured motorist.

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Answered on 2/18/05, 6:56 am


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