When filing a claim for car insurance, many people overlook the need for a diminished value claim. Most insurance companies too naturally do not bring this lapse on your part to your notice. In order to make a proper diminished value claim, one first needs to understand what this term covers.
Resale Value of the Car
Even after a complete overhaul of the car and a marvelous mechanic, the resale value of a car that has been in an accident is lower than that of a similar car that has not been involved in an accident. This is because of various reasons – some sentimental and some genuine.
If you try to sell your car after the accident and the repairs, you will be offered less for it than you would have been offered for it before the accident. The difference in the two rates offered is the diminished value of the car.
While everyone agrees that the value of a car that has been involved in an accident is lower, only experts are able to offer a precise figure about the diminished value. This is because many factors such as the cost of the repairs, the model year of the car, and others need to be taken into consideration.
Estimation
One way of estimating the diminished value of your car is to find out what buyers are willing to offer for a similar accident-free car and compare this with offers for your car. However, this is not evidence that you can provide to an insurance claims adjuster. After you get a rough estimate of the diminished value, ask an expert such as a car broker or mechanic to break down your estimate under different heads.
Present this new valuation of your car to the insurance claims adjuster and ask for a payment toward the diminished value. You will not get a diminished value payment if your car is very old or the total damages caused were minimal.
You can file a claim for diminished value even if all your other claims have already been settled in full by the insurance company.
Getting Legal Help
In the event that your insurance claims adjuster refuses to recommend a fair and just payment toward diminished value, you can file a case in court against the insurance company. To ensure that your case is considered favorably, retain a lawyer who specializes in automobile accident claims.
