Diminished Value Claims

Many car owners are unaware of the option to file a diminished value claim with their insurance company after an accident. This type of claim can result in a higher compensation payout for the amount that your car lost in resale value due to the accident, but not all insurance companies will provide you with the best diminished value assessment

Diminished value claims are based on the fact that the average buyer will pay less for your vehicle if it has been in an accident than for a similar model that has not. The insurance industry estimates this effect by comparing your car to the average market value of your model, adjusting for pre-accident mileage and other factors. The insurance company will then apply a “damage multiplier” to the base loss of value and calculate your final figure for your diminished value claim. This damage multiplier starts at 0.00 for cars with no structural damage or replaced panels and can go as high as 1.00 for vehicles with significant, extensive damage.

To make a successful diminished value claims, it is important to have the right documentation. Taking photos of the accident scene, having the vehicle appraised by an independent professional and submitting a vehicle history report are all helpful. Additionally, it may be necessary to request expert testimony. This is especially true if the insurance company attempts to deny or undervalue your claim, or if they are unable to provide you with the information you need.

It is also important to act quickly after the accident. Insurance companies only have a certain amount of time to accept or deny your claim, and this period can be limited even further if you wait too long to file. Having an attorney on your side will ensure that all of the necessary documentation is submitted and filed on time.

A lawyer can also help to negotiate with the insurance company for a fair claim settlement. Insurance companies often have formulas and software that offer a baseline figure for your claim, and arguing with them to get you a fair settlement could require the expertise of an experienced attorney.

Having an attorney can also save you money. Many insurance companies will try to settle with you for as little as possible, but a lawyer can help you fight for the maximum amount of money that you deserve. An attorney will ensure that all of the necessary documentation is provided and filed correctly, and will be able to challenge the insurance company’s calculations with evidence from professional appraisals. In addition, an attorney will be able to identify loopholes that the insurance company might use to avoid paying you what you deserve. This can save you money in legal fees and other costs down the road.