As you explore your legal options after a car accident, you might come across the concept of a “diminished value claim” as one possible way to get the compensation you deserve. So, what is a diminished value claim, and how can you tell if it is the right solution for you?
A diminished value claim is a formal request to receive compensation for the decrease in your vehicle’s monetary worth after an accident. The amount of compensation you can receive for this type of claim depends on the fair market value of your vehicle before and after the damage.
Knowing When To File a Diminished Value Claim
It may be worthwhile to file a diminished value claim if your vehicle becomes worth considerably less after an accident. While you might typically expect that repairs will restore your car’s value, this might not always be the case. There are times when the damage to a vehicle will permanently affect its worth, even after a stellar repair job.
For example, a vehicle that was worth $30,000 before an accident might diminish to a value of $25,000 due to the use of aftermarket parts or the history of being in an accident. You can recover this loss by proving that the damage was due to an accident caused by another driver. Even if there was no injury from the accident, a diminished value claim can secure considerable compensation from the at-fault party.
How To Estimate Diminished Value
The formula for calculating a vehicle’s diminished value factors in the pre-accident value, the severity of the damage and the vehicle’s mileage. Some insurance companies use a formula that caps diminished value at 10% of the vehicle’s pre-accident value, but this is often negotiable, especially with legal representation.
Working closely with a car accident lawyer can help you arrive at an accurate estimate of your vehicle’s diminished value. Attorneys leverage their personal experience and utilize their connections with experts whose appraisals will stand up in court. Using these resources will place you in a stronger position throughout your car accident settlement.
How Does a Diminished Value Claim Work?
A diminished value claim starts with strong evidence proving your vehicle’s loss of value and the other driver’s fault. Thorough documentation and a certified appraisal will support your claim. When you are ready, you and your legal team can file the claim with the at-fault driver’s insurance company and negotiate a satisfactory settlement.
If your accident was caused by an uninsured driver, it might not be worth suing for your vehicle’s diminished value. Instead, you can file a claim with your own insurance company if you have uninsured driver coverage on your policy. You can also turn to uninsured driver coverage if your damages occurred in a hit-and-run accident with an unidentified driver.
Sargon Law Group Can Represent Your Claim
Suing for a vehicle’s loss in value is an unfamiliar concept for most people, even those who have experienced an accident in the past. At Sargon Law Group, our car accident attorneys can help you understand what a diminished value claim is and give you a better chance at a favorable outcome.
We represent car accident cases in Arizona, New Mexico, Colorado and California. Contact us today for a free consultation. We are ready and willing to answer any questions you may have about filing a diminished value claim for your vehicle.