How are damages calculated if replacement requires purchase of unnecessary parts?

Question

I own a sports car and was recently rear-ended by someone who has accepted full liability. My insurance is trying to price out the repair cost of my car and assures me I will not be out of pocket anything. However, there is one wrinkle.

I have a ground effects kit on my car (front air dam, side skirts, rear bumper cover) that cost around $1200 for the full set. At the time of purchase the rear bumper cover could be purchased individually for around $600. However, during COVID the manufacturer went out of business. I've found someone still selling remaining inventory of these kits, but only as the full kit for $1200. There is also a manufacturer of far lesser quality (different material, fitment issues, etc) selling a similar component for $250.

So the cost of the part damaged is $600, but the only way to correctly 'repair' the damage is to buy a full kit for $1200. In this sort of situation how are damages calculated? Am I owed the $600 replacement cost for the component, or am I owed the $1200 because that's what I'm actually out to do the repair correctly? Or do I need to take the $250 component that insurance wants me to accept?

Answer 1

General the measure of property damages in an automobile accident lawsuit in the United States is the minimum amount of money necessary to restore the vehicle to its pre-accident state, and/or the diminution of fair market value of the vehicle due to the accident that repairs can't fully remedy in a reasonable fashion.

Beyond that very general statement, the cases get decided on a case by case basis after consideration of all of the relevant facts related to damages.

There are legitimate arguments either way regarding what is reasonably necessary to repair the vehicle to its pre-accident state in this situation.

Generally speaking, if there is a lawsuit, neither side will get their attorney fees in the United States, so they both have to decide how much they are willing to fight over a modest dollar amount dispute. A $950 disagreement would be eaten up in two to four hours of lawyer time, so that colors the analysis. To some extent it ends up being a game of chicken - who is most credibly going to continue to fight knowing that taking a legal battle to the full extent it could be taken would be mutually destructive.