You May Have Diminished Value
When your automobile is damaged in a collision it has likely lost resale value even if it has been expertly repaired. This is because a potential purchaser will want to pay less for your car once they find out it has been involved in an accident. If your car is more than a few years old many insurance companies will only repair it with aftermarket parts rather than OEM parts which further diminishes its value. The use of aftermarket parts saves insurance companies billions of dollars on the cost of repairs annually and results in further loss in value to the damaged car owner.
For example, let’s assume that your car’s resale value before the accident was $49,000. After the accident and repairs the resale value of your car is now only $38,000. This $11,000 loss in market value from the accident is your diminished value loss.
You may be asking yourself why your car has lost thousands of dollars in value when it has undergone the highest quality repairs. The reason your car is worth far less now than before your accident and repairs is due to the fact that the majority of consumers do not want to buy a car that has been involved in an accident. There is stigma associated with automobiles that have prior accident histories which means that a consumer will expect to receive a significant discount when they purchase your vehicle.
You May Be Able to Recover Your Diminished Value Loss
The good news is that you may have the right to recover your diminished value loss from the insurance company of the driver who damaged your vehicle. The bad news is that insurance companies generally deny these types of claims and try to pay as little as possible on them. An experienced diminished value lawyer can help you stand up to the insurance company and prove that you have the diminished value vehicle claim.
How to Prove Diminished Value of a Vehicle
While proving diminished value can be challenging our diminished value law firm handles these types of cases every day. We know how to prove diminished value of a vehicle so that our clients can recover the money that they are owed.
- Be Prepared
The most important thing you can do when trying to recover diminished value from an insurance company is to thoroughly prepare and support your claim. While you may be considering handling your claim on your own this is one time when hiring a qualified professional is likely to pay off. A good diminished value lawyer can get the job done quickly saving you a lot of time and frustration in the process.
- Get a Detailed Diminished Value Report from an Experienced Professional
In order to prove your diminished value loss you will need to prepare a report demonstrating that your vehicle has sustained a loss in market value. It is generally best to work with a qualified diminished value professional who can prepare a detailed estimate report for you. When you hire our law firm we will take all of the steps necessary to properly develop and support your claim. Our diminished value professionals will conduct a thorough and individualized valuation of your vehicle’s market value before and after your accident. An independent expert appraiser with strong credentials in collision damage analysis and vehicle market values may assist us in our process.
- Submit a Demand to the Insurance Company
Once your vehicle’s diminished value report is complete we will submit a demand for payment to the insurance company. If we do not receive a response we will follow-up with the insurance company within 30 days. In most cases we are able to reach a settlement with the insurance company within 30 to 60 days. However, there are situations where an insurance company will either refuse to make any payment or will offer an unacceptable amount. When this happens because we are licensed attorneys, we can file a lawsuit against the insurance company on your behalf. Our lawyers are seasoned litigators with more than 50 years of combined experience taking on insurance companies. The courthouse is a familiar environment to us and we have no hesitation to go to court. In addition, we are well known throughout the insurance industry for being tough, honest attorneys who have what it takes to get results for our clients.
Contact Us Today
If you think you may have a diminished value claim we can help. Reach out to our firm and someone will be in touch to discuss your case shortly.