Simply put, diminished value is the amount your car's value goes down following an accident. Even if the repair shop does an excellent job and you can't tell that the car was ever in an accident, the value will still decrease because no one wants to buy a car that has been wrecked and repaired. A newer car will tend to lose more value as a result of an accident than an older one, but anyone can file a diminished value claim provided the accident was not their fault.
Insurance Companies Are Not Your Friend
If you have been involved in a car accident that was not your fault, then you are entitled to compensation for diminished value to your car as well as repairs. Leaving the job of estimating the proper amount of compensation to the insurance company is probably not the best idea, however. It is in their interest to pay you as little as possible, since you are not their customer. In fact, many times an insurance company will be happy to pay your repairs, but forget to mention that you are also due diminished value compensation.
State laws regarding diminished value can vary quite a bit, but most states have sided with insurance companies that first party claims (meaning: you are claiming diminished value for your own car with your insurance company) are not valid. Third party claims (meaning: you are claiming diminished value with someone else's insurance because they crashed into you), on the other hand, are generally honored.
How to Get A Fair Deal
If your car is worth at least $10,000 (or model year 2007 or newer) with at least $2,000 worth of damage, you may very well have a legitimate diminished value claim. Finding a collision repair professional can help with negotiations between the repair shop and the insurance adjuster, and he will also be able to document the repair process and the lost value to the vehicle as part of a DV claim. And last but not least, he can monitor repairs to make sure that the shop and adjuster are indeed doing what is right for you, not just what will save them a few bucks.
Once the repair specialist has finished his documentation, he should prepare a report outlining the value of the car before and after the accident, and all the repairs that were done. Such a report will prove invaluable both in dealing with insurance adjusters and in court, should things go that far.
Finding Legal Help
If you think you may be eligible for a diminished value claim, you should contact an attorney sooner rather than later. Time is of the essence.
