If you’re involved in a car accident that was someone else’s fault, you may be eligible to file a diminished value claim against their insurance provider. However, it’s important to understand that these claims can be complex and difficult to settle. In addition, insurance companies may attempt to avoid paying out on these claims, which can make it even more challenging to get the compensation you deserve.
Diminished value is the difference in a vehicle’s resale or trade-in value after it has been repaired from an accident. This difference is the result of the fact that a potential buyer will know about the accident history and be less likely to pay the same amount for your vehicle as they would if it had never been in an accident. This is because a clean, unwrecked vehicle will appear safer and more appealing to buyers than one that has been in an accident.
The process of filing a diminished value claims can be lengthy and difficult, but it is necessary to fight for your right to fair compensation. To ensure that you receive the maximum amount possible, it’s a good idea to use an independent diminished value appraisal service such as DVCHECK to help you. This company specializes in these types of claims and can provide you with an estimate within 24 hours. They can also work with your insurance company to help expedite the process.
A diminished value estimate is a complicated calculation that takes into account numerous factors, including the type of damage, how extensive the repairs were, and whether you have collision or comprehensive coverage on your policy. In addition, there are different statutes for diminished value payments in each state. For example, some states have a 10% cap on the base loss of value while others have a lower limit or no limit at all.
To calculate your diminished value, begin with a source like Kelley Blue Book or Edmunds to find the market value of your car before the accident. Then, take that value and multiply it by 10%. Next, you’ll need to apply a damage multiplier and a mileage multiplier. For instance, if the accident you were in caused moderate structural damage and moderate cosmetic damage, your insurance company will probably cap your diminished value at around $12,000 or $12,000. After that, they will add up the value of all the damaged areas and the repair cost to come up with a final number.
Depending on the state you live in and your insurance coverage, you’ll need to submit this appraisal to the at-fault driver’s insurer to make a diminished value claim. Once the insurance company reviews your documentation, they will make a settlement offer. If you’re unable to reach an agreement with them, it may be necessary to go through mediation or arbitration to settle the dispute. It’s important to have a lawyer on your side to help you navigate the process.