Thousands of vehicles are damaged each year in traffic accidents. The cost of repairs can sometimes be astronomical. Even after you repair your vehicle the value of your vehicle dramatically drops. The only way to recoup those losses would be through what is known as a diminished value claim.
The term diminished value is any form of monetary value that was lost from your vehicle after an accident even after it has been repaired. The diminished value of a vehicle is the difference between the price of the vehicle after repairs and the price you would sell it if there had been no accident or damages. This value is considered a loss and can be added to the settlement claim.
Even after your car is repaired perfectly it would not hold its original value. In most cases, vehicles that have been in an accident will have some form of diminished value or “depreciated value”.
Insurance claims adjusters will do everything to manipulate, frustrate or stall claimants especially if they know that you still don’t have a personal injury attorney to process your settlement. Diminished value is not something insurance companies account for in their payouts after an accident and will never mention it to their customers. They will usually argue that proper repairs will return full value to the vehicle but the accident itself will always be present in the vehicle’s history which affects the vehicle’s resale value.
According to Texas state law, you are entitled to file an insurance claim for diminished value within 2 years from the date of your loss if you were the not-at-fault party in a car accident. Once you have filed your claim, you will need to prove that your vehicle has lost a specific amount of value. Your insurance company will need to pay for the diminished value of your vehicle.
If you want to know the true market value of your vehicle, you will need a professional automobile appraiser to determine the diminished value for your claim. They are able to take into account the full history of the vehicle and provide you with an expert opinion on the vehicle’s value that you can then present to insurance companies.
To solidify your claim, you must remember to keep receipts, estimates and other documents from the shop that did repairs on your vehicle.
All vehicles are different and the diminished value will also vary depending on the make, model and other factors that influence the calculation of your vehicle’s diminished value such as:
It’s your right to protect your investment. Contact The Hadi Law firm and we will be glad to assist you with your diminished value claim.