3 Types Of Diminished Value Claims

Diminished value claims can fall into one of three categories — immediate diminished value, inherent diminished value, or repair-related diminished value. Each of these claims describes a specific way that the market value of a car can be reduced after a car accident.

The kind of claim you file depends on how and when the collision occurred, as well as whether or not repairs were done and if they were done correctly. Below, we go over all three types of diminished value claims and how to get help filing a loss of value claim from a qualified damaged car attorney.

Inherent Diminished Value Claims

Inherent diminished value is the most common type of damaged car claim and refers to the intrinsic loss in market value after a car has been in an accident. Because a car that has been repaired is always less valuable to future buyers, it won’t ever sell for as much money as it would have if the accident hadn’t happened and an inherent diminished value claim can help recover that difference.

Immediate Diminished Value Claims

Immediate diminished value is the disparity between the market value of a vehicle after it has been involved in an accident but before it has been fixed. Since most damaged car cases deal with inherent diminished value, this type of claim is rarely filed. However, courts may use this figure when calculating damages in a civil suit.

Repair-Related Diminished Value Claims

Repair-related diminished value occurs when a car is fixed after a collision but the work is subpar or poorly done. This causes an even bigger loss of market value than if the vehicle was only in an accident, since defective components and unfinished repairs may cause your car’s worth to decrease even more. A repair-related depreciation claim can provide compensation for the difference in your vehicle’s value before the accident and after the improper repairs are fixed.

Tips For Filing A Depreciated Value Claim

Once your vehicle has been repaired after an accident, you should submit a diminished value claim to the at-fault driver’s auto insurance provider as soon as possible. While you usually have a couple of years before the statute of limitations to file is up, any delay could be used against you to deny your claim. It’s also possible that your vehicle could continue to lose value the longer you wait.

If you don’t know the person who hit you or they don’t have enough insurance to cover your diminished value claim, you may be able to file with your own insurer. The only caveat is if you’re the at-fault driver, in which case most insurance companies won’t cover the lost value of the vehicle.

Before making a claim for lost value, you need to know how much your car is actually worth and how to calculate the difference between your vehicle’s pre- and post-accident value. You may be able to obtain a larger settlement if your car is newer or has luxury features compared to one that is older or has more mileage on it.

If your car has been in an accident before this one, don’t expect a big settlement. The market value of your vehicle was already lower than a non-damaged vehicle with the same year, make, and model before the new collision. This means that the difference between its pre-accident and post-accident value will be much smaller.

If your insurance company gives you a hard time or denies your claim, you can hire a third party to come and look at the damage to your vehicle to provide an estimate of its diminished value. Having someone else examine and document the damage to your car can give you greater negotiating power with the insurance provider and may result in a larger settlement in the end.

Handling of lost value claims usually takes more time than typical car accident claims. Calculating diminished value can be complicated, so it can take several weeks to months to settle these types of cases. For the best possible outcome, work with a lawyer who can serve as an intermediary between you and the insurance company and help negotiate your settlement.

Get The Help You Need From Our Qualified Massachusetts Damaged Car Attorneys

After a car accident has damaged your vehicle, you won’t be able to get the same amount of money when you sell it as you would have before – even if you have it fully repaired. Our experienced Salem, MA diminished value attorneys can help you recover the compensation you’re owed for the difference. Contact us today to learn more about diminished value claims or to schedule your free initial consultation by calling 978-744-8000.