How To Negotiate Your Car Depreciation After A Crash

Your car’s value after a collision will always be lower than before the crash, even if it looks brand new after repairs. This is called diminished value. Recent laws in Massachusetts now say that insurance companies are required to reimburse drivers for covered claims. But what if they give you a lowball offer?

Here’s how you can negotiate your depreciated value claim and what our experienced diminished value lawyers can do to help.

Start By Understanding The Post-Accident Value Of Your Car

First and foremost, you need to have a good understanding of how much your car is worth after the collision. You can do this by calculating inherent diminished value like so:

1. Take 10% of your vehicle’s market value
2. Multiply that number by the amount of damage your car sustained
3. Then multiply that amount by the number of miles on your car

The final figure you arrive at will be the maximum amount of depreciated value your insurance company will pay. Find out how to calculate your exact inherent diminished value here.

File A Claim With Your Insurance Company

Next, file a claim with your insurer and include evidence of the accident and any documentation you have to show the pre-accident value of your car. Your insurance company will likely try to argue that the market value of your vehicle before the accident was lower than what you claim so the amount of depreciated value they owe you will also be lower. It’s a good idea to have a defense ready in advance.

Review Your Insurer’s Offer

After you file a claim, your insurance company will make an offer if it’s accepted. However, this is almost never the initial amount you ask for when you file. It will be lower and it’s up to you to decide if the offer will cover your costs. If it’s acceptable, you can write to your insurance company or call them to let them know you agree and are willing to take their settlement offer.

Submit A Counteroffer

If the offer is too low and there’s enough room for you to make a counteroffer, you can submit this to your insurance company for reconsideration.

For example, if your original claim was for $10,000 and your insurer offered you $5,000, you may be able to counteroffer for $8,000. Just make sure you have enough evidence on paper to show why your vehicle’s depreciation is worth this much before you go playing hardball with your insurance company.

Receive Your Settlement

If your insurer accepts your counteroffer, they will issue a check for payment and close the case. You will not be able to file another claim or seek additional compensation for the same accident. You may go back and forth with the company a few times to negotiate a settlement that you both agree with.

In the above example, the insurance company might send a counteroffer of $6,000 and you might send them another counteroffer of $7,000. Or, they may deny your counteroffer and state that $5,000 is the highest they are willing to pay for your claim.

Litigate Your Case

If your insurance company doesn’t offer you a fair settlement and you’re unwilling or unable to accept a lower offer, you can take your insurance company to court for a judge to decide the matter. This is called litigation and you will be considered the plaintiff, or the person who is suing. Your insurance company will be the defendant.

At the hearing, you’ll present evidence as to why your insurer should pay the amount you’re filing for and the company will present evidence to show why your depreciated value isn’t as much as you are claiming. Then, the court will issue a judgment. Depending on the circumstances, you may be able to appeal the decision if you don’t win.

Need Legal Help After A Car Accident? Call Mazow | McCullough, PC Today

If your car has lost value after an accident, you may be able to get some of it back with a depreciated value claim. Our damaged car attorneys have the experience and skills to help you negotiate the maximum possible settlement and will work directly with your insurance company on your behalf. We handle the letters, phone calls, and emails so you don’t have to.

Contact us today to learn more about filing an inherent diminished value claim or to set up a consultation to discuss your specific case by calling 978-744-8000. Or, fill out our online form to request your case review now.