After a car accident, the focus is often on repairing the damage to the vehicle and getting back on the road. However, even after repairs are made, the value of the vehicle may be diminished due to its accident history. Our friends at Therman Law Offices, LTD are here to share the concept of diminished value claims and how individuals can recover losses for the reduced value of their vehicle after repairs:
What Are Diminished Value Claims?
Diminished value refers to the decrease in the resale value of a vehicle after it has been involved in an accident and repaired. Even if a vehicle is repaired to pre-accident condition, it may still be worth less in the eyes of potential buyers due to its accident history. Diminished value claims seek compensation for this loss in value, allowing car owners to recover the difference between the pre-accident value of their vehicle and its reduced value after repairs.
Types Of Diminished Value
There are three main types of diminished value that may affect a vehicle after an accident:
1. Inherent Diminished Value: This type of diminished value occurs simply because a vehicle has been in an accident, regardless of the quality of repairs. Potential buyers may be wary of purchasing a vehicle with an accident history, leading to a decrease in its market value. With so many services that keep track of the accident history of cars, this value is important to many car owners.
2. Repair-Related Diminished Value: Sometimes, repairs may not fully restore a vehicle to its pre-accident condition. Poor-quality repairs or incomplete repairs can result in further depreciation of the vehicle’s value.
3. Immediate Diminished Value: Immediate diminished value refers to the loss in value that occurs immediately after an accident, before any repairs are made. This type of diminished value is based on the perception that a vehicle with accident damage is worth less than a similar vehicle with no history of accidents.
Recovering Losses With Diminished Value Claims
In order to recover losses for diminished value, individuals typically need to file a diminished value claim with the at-fault driver’s insurance company. Providing evidence of the vehicle’s pre-accident value, the extent of the damage, and any repairs that were made is crucial to supporting the claim. Additionally, obtaining a professional appraisal of the vehicle’s diminished value can strengthen the claim and increase the likelihood of a successful outcome. Attorneys can assist individuals in gathering evidence, negotiating with insurance companies, and pursuing compensation for diminished value. You can certainly try to do this step on your own, but it is not advisable as insurance companies do not want to pay out money if they do not have to so they will try to negate your claim.
Navigating The Legal Process
Navigating the legal process of pursuing a diminished value claim can be complex, especially when dealing with insurance companies and negotiating settlements. Having the guidance of an experienced car accident lawyer can make a significant difference in the outcome of a diminished value claim. Accident lawyers are dedicated to helping individuals protect their rights and recover losses for diminished value after car accidents. With their expertise and support, individuals can pursue fair compensation for the reduced value of their vehicles and move forward with confidence. If you have recently been in a car accident, contact a lawyer near you for help immediately.