Diminished value is the difference in price a buyer would pay for your car before and after a car accident, taking into account your car’s accident history. This type of claim is a bit more difficult to win, but it can be done if you have the right resources at your disposal.
Whether or not you can file a diminished value claim depends on a number of factors, including the following:
Who was at fault in the accident: If you were at fault in an accident, you cannot file a diminished value claim. This is because you are considered to have contributed to the collision, and insurance companies typically refuse to pay out on these claims. However, if the other driver was uninsured, or you have an uninsured motorist clause in your own policy, you can usually file a diminished value claim.
What state you live in: Different states have different laws and regulations regarding diminished value claims. Some may not allow you to make a claim at all, while others will require you to present evidence of the loss in value before accepting any compensation for the claim.
The insurance company’s attitude: An insurer can be difficult to deal with, and they will often do everything in their power to avoid paying out on a diminished value claim. Therefore, it’s important to have a lawyer on your side who understands the process and can fight for you.
Once you have your appraisal report from a qualified third-party source, the insurance company will typically respond within a day or two with their settlement offer. You can then contact their assigned adjuster (the information is on the report from Benchmark Auto Appraisers L.L.C.) and haggle over the amount until you reach an agreement.
If the insurance company doesn’t pay you, you can always consider filing a lawsuit. However, it’s best to contact an attorney who specializes in diminished value claims before you do this.
Diminished Value Calculator
You can use an online diminished value calculator to find out how much your vehicle has lost in value after a crash. However, be aware that these tools are only estimates and they will vary depending on the severity of your accident.
The best way to determine how much your car has diminished in value is to get a professional appraisal from an experienced automotive appraiser. This will include a thorough examination of your vehicle’s features and components, and will give you an accurate picture of what the car is worth. Once you have this information in hand, you can negotiate with the insurance company and make a strong case for why you deserve compensation.