How to File Decreased Value Claims After an Accident

Although all cars depreciate in value over time, this decline can be substantially more severe if the car has been damaged in an accident. For this reason, it’s important for owners to understand their rights and the process of filing a diminished value claim in the aftermath of a vehicle collision.

While all states allow drivers to file diminished value claims, the specific regulations vary by state. In general, though, you must be able to demonstrate that the other party was at fault for the crash in order to receive compensation.

To do so, you’ll need to provide the insurance company with proof of the loss in value. This typically includes documentation of the damage from police reports, repair invoices, photographs and a professional appraisal of the vehicle. Additionally, it’s crucial to check with your insurance provider to make sure that you don’t have any policies or coverage limitations that would prevent you from making a claim.

Once you have this information, you’ll need to determine the initial sales or market value of your vehicle before the accident. This can be done by using a calculator on the NADA or Kelley Blue Book websites. You’ll also need to be aware of any restrictions on your title that could prevent you from filing a diminished value claim, including a rebuilt or salvage title.

Next, you’ll need to calculate the diminished value of your vehicle by adjusting the base sale or market value for the damage and subtracting it from the original price you could have received had the accident not occurred. Once you have this number, you’ll then need to multiply it by a damage multiplier (ranging from 0 for no structural damage to 1 for significant damage) and add that amount to your base loss value to get the final figure.

A skilled and experienced car accident attorney can help you level the playing field when negotiating with insurance companies regarding diminished value claims. In addition to ensuring that all required documentation is filed correctly and on time, an attorney can also review the insurance company’s offers to ensure you are receiving fair compensation for your property loss.

At Thompson Law, we have helped thousands of clients with diminished value claims. We will work tirelessly to level the playing field with the insurance company and obtain fair compensation for your vehicle’s lost resale value.

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