Have you ever been in a car accident, the damage that occurred to your vehicle can result in loss of its value. Even if you get the damages repaired, the vehicle is worth less money than it was before the crash.
As a consequence, individuals can file for diminished value claim with the help of an attorney.
What is the “diminished value of your car”?
It means that your car will lose some of its value due to being involved in a crash and not being original. The car loses value because it is repaired and some of its parts are not original or factory-fitted.
The diminished value of your car will result in a lower selling price. In some states, you are legally required to disclose the accident history of your car and bring it into the knowledge of the new owner. Such a car can be hard to sell.
Most cars are insured but the insurance companies are not willing to pay for each part/repair. This can result in poor repair jobs which means loss of value.
Does The Insurance Cover Diminished Value Claims?
The diminished value claim can only be filed if you are the victim and another driver is at fault. You will have to file a claim against the insurer of the at-fault party.
However, if the at-fault party does not have car insurance then you will have to check with your insurer whether it covers uninsured motorists or not. If yes, then you can file the diminished value claim with your insurer.
What Factors To Look Out For When Calculating The Claim?
The diminished value of your car can be determined by taking into account a few factors such as:
– The total amount to repair the damages that occurred to your car
– The repair jobs quality ( is it just like the original)
– The cost of a similar vehicle, the same year and model that is non-accidental
– The type of damage that occurred eg exterior damage or structural damage
– Is the damage too severe or moderate?
– The current market value of your vehicle
– The expected price that it will sell for in future
These factors can help you determine and estimate the value of your claim. However, when you are filing for the claim do not rely on the estimates of the insurer. Get a diminished value claim attorney to help you claim the rightful compensation. This way you will be able to negotiate a better settlement with the insurance company.
What Factors Affect The Diminished Value Of Your Car?
Apart from the factors that can help you calculate the diminished value of your car, there are factors that can lower the amount of compensation you will get for your claim. These factors include :
The Model And Brand Of Your Car:
If you own a car that is an entry-level model or the base model then unfortunately its diminished value will be lower. On the other hand, a higher-end model will retain more value for a longer period of time and as a result, if it is involved in an accident it's diminished value claim will be higher.
How Old Is Your Car?
Simply put an older car will be less valued and if it is involved in an accident it will have a lower diminished value. With most people driving cars that are older than 7 years, you can be one of them and your claim might get rejected by the insurer. Older cars are valued less so their value depreciation is lesser if they are damaged.
The Accidents History Of Your Car
This is where the situation can make or break because if you have a car that was previously involved in a crash its value is already diminished. This means that the car is valued lower and it cannot depreciate further so the insurer might reject your claim.
The Mileage Of Your Car
The value of your car goes down as the number of miles adds up on the odometer. The same is the case with diminished value claims. For example, if an insurer gets two claims of diminished value for the same model of a car, the car with the lower mileage will be awarded more compensation. It is also possible that the insurer might reject your claim if your odometer has more than a hundred thousand miles registered on it.
How To File A Diminished Value Claim?
The first and most important thing you have to do is to hire a diminished claims attorney. At The Hadi Law firm, you will find the most experienced and professional attorneys. They can help you to get the rightful compensation in a diminished value claim.
The next step is to determine who is at fault. The Hadi Law firm attorney will help determine the at-fault party. They will inform you about the state traffic laws and check the accident details to file a proper claim. To help your attorney you can take pictures of the site of the accident because they can become part of the evidence.
Check the laws of your respective state. This can help you get an idea of your rights in regards to diminished value claims
Check the at-fault driver’s insurance company’s terms and conditions, to see if they cover diminished value claims. If the at-fault driver does not have insurance then check with your insurance provider if they offer uninsured motorist coverage.
Gather documentation regarding the damage that has occurred to your car and the amount of money needed to repair this damage. This will help you in calculating the compensation.
File the claim with the legal advice of your attorney and the method stated by the insurance company. At this point, your attorney will be responding on your behalf and handling your claim.
Wait for the response and check with the insurance company regularly. If there are no updates and the insurance company remains heedless to your queries, you can ask your lawyer and take them to the court of law.
The information provided above can help you understand diminished value claims. If you want to file a claim then you should contact The Hadi Law firm, to get the compensation you deserve.
