When your car is damaged in an accident, the fair market value of the vehicle drops. Even after repairs are made to restore it to its original condition. That means your car is worth less, even in pristine, post-repair condition, than an identical vehicle that has not been in an accident. The vehicle will now sell or trade for less than it otherwise would have. Even if you don't sell your vehicle just the fact that your vehicle was in an accident is a net loss!
Filing a diminished value claim allows you to recover the difference between your car’s pre-accident value and its value after the repairs from the car insurance company of the at-fault driver. This is funds ( Money ) that you would receive on top of the vehicle repair. In the case of our photo displayed above if that was your vehicle, you would've got your car repaired by the at-fault party for free and on top of that received a check ( Any form of payment you would prefer ) for $3,920 to spend, however, you would like.
The point of a diminished value claim is for the innocent party not to take a net loss for an accident that wasn't their fault! Sounds too good to be true? Well, remember that you are not at fault in this accident that is why you qualify for this claim.
- The other party was at fault: The other party involved in the accident needs to except fault. If you caused the accident, you generally can’t file a diminished value claim.
- Your aware of the at-fault drivers property damage limit: A property damage limit in an insurance policy refers to the maximum amount the insurance company will pay for damages to someone else’s property. Understanding the at-fault party’s insurance policy limit helps determine the maximum compensation available for damages, including diminished value. If the policy limit is sufficient, it assures that funds are available to cover the diminished value claim.
- You have a repair estimate: This estimate typically includes labor costs, parts costs, and any additional fees or taxes. It helps vehicle owners understand the expected expenses before authorizing the repairs
It's important to note the at fault party should be the ones covering the repair which should also be indicated on the repair estimate.
- You own a high-value vehicle: If your vehicle is newer (less than 6 years old) and did not have a history of accidents prior to the current incident, you can file this type of claim. Of course, this doesn't mean that vehicles older than seven years old don't have value. Every case can be looked at individually, but for the most part, this is what is generally accepted by insurance companies.
- You have a clean title: If your car has a rebuilt or salvage title you won’t be able to file a diminished value claim.
- Let us know when you do: On average, you have about 2 years to file a claim, but in some states, you may have up to four years. If you’re waiting for repairs, we suggest completing them first and then returning to file your claim here. If you have any other questions or concerns, please don’t hesitate to email us below.
If you have any questions or feel that you have a unique situation.
Please call or email us at: support@getaclaim.com
