What is Diminished Value Claim in Houston?
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 Trial Law 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.
The 3 types of diminished value
1. Repair related diminished value
Cost for any flaws related to the substandard quality repair of the vehicle. This includes cosmetic or visual imperfections such as misaligned doors, dings, wrong color match, or mechanical repair flaws that fail to bring the vehicle to its standard operation. Some examples of mechanical repair flaws are difficulty in steering, electrical problems and more. The use of generic parts rather than OEM parts also lowers the value of the car.
2. Claim related diminished value
Cost for when insurance companies deny you of certain types of repair or parts necessary to restore your vehicle to perfect working condition.
3. Inherent diminished value
Cost for lost value in the resale market due to the accident. Nowadays, it’s easier for people to know the history of the vehicle they are planning to buy just by searching it on the internet. This means, even if it was only minor damage, the resale value can now be easily affected and potential customers would rather opt for cars without any accident history. 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:
- Prior accident history
- The vehicle’s condition before the accident
- Mileage of the vehicle
- Age of the vehicle
- Undamaged value of the vehicle
- Marketplace demand
Sure, it may seem easy to calculate the diminished value but without legal support, it may be difficult for you to convince the adjusters of your claim compared to having an attorney experienced with car accident claims to properly calculate and battle it out for you. 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.
