How to File a Diminished Value Claim After a Car Accident

What does a Diminished Value Claim mean?

The diminished value claim is a loss of value claim, which involves the loss of value after a car accident. Accident history reports will reduce the value of the car, even if it’s fixed properly.

Cars that have suffered accidents are likely to be sold for less than their value, as buyers may fear that there are unseen damages or potential issues with the vehicle.

A diminished value loss is an example of that occurring if a car had a value of $30,000 before the accident, but the value was reduced to $24,000 after the accident.

Types of Diminished Value

Drivers need to know there are various types of diminished value claims. 

Immediate Diminished Value

This is the loss in value right after the accident, prior to being repaired. 

Inherent Diminished Value

This is the most common type of diminished value claim. It is a term used to describe the loss in market value that occurs after appropriate repair works. 

Repair-Related Diminished Value

This happens when repairs are not well done or the repairs are not complete, which further diminishes the value of the vehicle.

Most accident claims are directed toward the inherent diminished value because, most of the time, a repaired vehicle is worth less based on the accident history. 

When is the right time to make a Diminished Value Claim?

When another driver is at fault for the accident, in many situations, it’s possible for the driver to file a diminished value claim. Typically, claims are made against the insurance company of the driver who was at fault in the accident. 

You may qualify if:

• There was another driver involved in the accident
•  The car had extensive damage.
•  The car’s value decreased following the repair.
•  Proper repair of the vehicle was done. 

Diminished value losses tend to be more severe for newer cars and luxury cars as consumers have high expectations of the condition of the car’s history. 

Kohan & Bablove Injury Attorneys’ car accident page details how accident victims could recover compensation for a variety of financial damages following an accident.

Step 1: Report the Accident

The first thing you need to do is report the accident to the police and your insurance provider. It’s crucial to have the proper documentation for any future claim. 

Be sure to collect:

• Photos of vehicle damage
• Police reports
• Witness information
• Insurance details
• Medical records (if injuries occurred) 

There is good evidence for injury cases and for diminished value cases.

Step 2: Repair the Vehicle

The majority of diminished value claims involve having a vehicle repaired first. Insurers will typically require evidence that repairs are finished before they consider loss in value. 

Select a reliable repair shop, and ensure that you have copies of: 

• Repair invoices
• Damage estimates
• Inspection reports
• Parts Replacement records

Quality repair work can minimize problems in the claims process.

Step 3: Determine the Vehicle’s Lost Value

To make a successful reduced value claim, evidence is required to demonstrate the amount of value the vehicle lost after the accident.

This often requires:

• A professional appraisal
• Market value comparisons
• Vehicle history reports
• Expert evaluations

Independent appraisers can go on to compare the vehicle’s pre-accident value to its post-repair market value.

Insurance companies will attempt to put the smallest possible value on the diminished value, so it’s important to have documentation. 

Step 4: Submit the Diminished Value Claim

Once the evidence is collected, the claim can then be filed with the insurance company of the at-fault driver.

A diminished value claim package can contain: 

• Accident reports
• Repair records
• Photos of damage
• Appraisal reports
• Vehicle valuation documents
• Demand letters

The insurance provider might evaluate the proof and provide a settlement offer.

Step 5: Negotiate With the Insurance Company

Depending on the circumstances, insurance companies may attempt to cut down on diminished value claims. They may argue: 

• The repairs put the full value back.
•  The damage was not serious
•  There was existing damage to the vehicle.
•  Appraisal amount is too high 

Negotiating with an insurance provider can be tough if not represented by a legal expert. 

At Kohan & Bablove Injury Attorneys, attorneys assist accident victims with handling insurance companies and obtaining equitable compensation for any losses associated with the accident. 

Is it possible to make a Claim Against Your Own Insurance?

An action of California diminished value claims is typically brought against the negligent party’s insurance provider. It might be harder to get the diminished value back from your insurance provider if you didn’t have coverage for it explicitly.

Insurance law and the language of insurance policies can be confusing. Consulting a lawyer can inform you of your rights.

Why Legal Help is important?

Many drivers don’t know what diminished value claims are. A lack of knowledge could mean that insurance companies are able to take advantage and may provide little or no compensation.

A proficient car accident legal representative can aid by: 

• Reviewing insurance policies
• Gathering supporting evidence
• Working with appraisers
• Dealing with insurance companies
• Taking legal action, if required

Having legal representation can help increase the likelihood of achieving compensation that is just.

Through Kohan & Bablove Injury Attorneys, the legal team assists clients in figuring out the full extent of the value of their claims and in protecting their financial interests.