By If you are involved in an accident and your vehicle has damage, it may be worth filing a diminished value claim. This allows you to recover the difference between the car’s pre-accident value and its resale value after repairs are completed. The insurance company may be reluctant to pay out on this type of claim, so it’s important to understand your options and how the process works before you file a claim.
Diminished value claims are based on the fact that your car’s resale or trade-in value depreciated due to the accident. The insurance company is not required to pay out on this type of claim, but they can if they have sufficient evidence that your car’s value was reduced due to the accident. This is why it is so important to take photos and document the vehicle’s condition immediately after the accident.
Insurance companies will use market research data, repair estimates, and appraisals to evaluate the case. Having these documents on hand can help speed up the process and improve your chances of getting the money you deserve.
The amount of diminished value paid by an insurer is based on the state’s regulations, the level of damage to your car, and its age. There are different rules for each of these factors, so it’s crucial to research state regulations before filing a diminished value claim.
Once the insurance company has a clear picture of your damaged vehicle, they will then use an adjusted figure called a “damage multiplier” to determine the amount of money you are entitled to receive. This value starts at 0.00 and can go as high as 1.00. This value is then added to the base loss of value cap that was established in step 1.
After your car has been repaired, you may have additional issues that can contribute to a decreased value. These include poor workmanship, cheap parts and materials used in the repairs, and a lack of factory-issued replacement parts. These issues can decrease the resale or trade-in price by up to 10%.
Having a professional third-party appraiser examine your car can help make sure the claim is taken seriously by the insurance company. The appraisal will also provide documentation of your car’s value that can strengthen your negotiation position with the insurance company.
Whether you are pursuing a diminished value claim with the at-fault party’s insurance company or your own insurer, it is crucial to have a team of experts by your side who can provide you with quality service and results. Contact the eAutoCollision team to discuss your auto body repair needs and how our experience with diminished value claims can benefit you. We’ve recovered over $17,000,000 for our clients this past year, so you can count on us to help you get the most out of your accident.
