Vehicle Diminution is a legal acknowledgement that a car damaged in an accident will have had some of its monetary value compromised as a result, regardless of condition it will be restored to after any potential repairs.
Diminution has been accepted in law for a number of decades at this point. In 1974, the Court of Appeal acknowledged that is a potential buyer of a vehicle is considering two cars which are otherwise identical – one of which has no repair history and the other which has – the buyer is likely to choose the car which has been unaffected, or at least expect a discounted price on the car which has needed repairs.
Payton –v– Brooks (1974) and Coles –v– Hetherton (2013)
The case of Payton –v– Brooks (1974) which was heard in the Court of Appeal, sets out that a claim can be brought for Diminution (loss in value) as the result of a vehicle having been repaired.
The summary is that if the full cost of the vehicle repairs is insufficient to cover the financial loss to the owner, there is no reason the owner should be deprived of additional compensation under that head of damage also.
Coles –v– Hetherton (2013) was another important case in this field. It determined that the financial loss to a vehicle owner is realised as soon as the vehicle is damaged. This loss is not simply the cost of the repairs, it is Diminution.
The cost of the repairs to reinstate the vehicle to its pre-accident condition is simply a contribution towards the Diminution. The Courts can award a sum of compensation in excess of the cost of the repairs if they believe the case justifies it.
Why would I need a solicitor?
Regardless of the fact that Vehicle Diminution has been acknowledged in law since the 1970s, it is not a very well known and understood area of law.
Insurers are aware of the impact that a number of claims would have on them financially if everyone who could seek compensation did. In which case, they will try to avoid settling wherever they can and for the unrepresented diminution Claimant, it can be extremely difficult and stressful to overcome without backup.
Further reading
For a detailed look at vehicle diminution claims, check out this resource.
How do I get in touch?
Contact our team today on 0113 306 9039, and we will advise you on whether or not your case is likely to succeed.
