Legal Question in Insurance Law in Virginia

Brand new vehicle wrecked, what are my options with insurance company?

My wife and nine month old twins were hit from behind while at a complete stop at a red light. Wife is very sore and stiff, babies SEEM to be OK, but really no way to tell, follow-up visits this week. We have a brand new 2002 Honda Odyssey, purchased the 21st of Novemeber, haven't even made one payment on this and now it's wrecked. Estimated 5K worth of damage to rear. Dealership is doing repairs, what I would like to know is, once all repairs are done, our vehicle is basically scarred, a car is never the same after an accident, especially not brand new. With CARFAX and just because I'm honest, when I go to trade this vehicle in or try to sell it, I doubt I'll get what I would if it hadn't been involved in an accident. What can I do? I heard I could trade it in immediately after the repairs and insurance would have to pay for whatever decreased value the accident caused, is this true? What are my options? Thanks.


Asked on 12/09/01, 10:31 pm

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Brand new vehicle wrecked, what are my options with insurance company?

No, the insurance company is liable for the cost of repairs but not for the overall decrease in value of the vehicle due to the accident.

If you like the vehicle and keep it well maintained,(and are not involved in any more accidents), it may make sense to hold on to it

as other factors over time may tend to offset the significance of the accident in diminishing the

vehicle's overall value, particularly a good record of upkeep and maintenance. You could then sell the car after a few years and, perhaps, suffer much less of a monetary loss.

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Answered on 12/10/01, 9:14 am


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