Diminished Value Claims Archives - Damaged Car Attorneys

3 Types Of Diminished Value Claims

August 29, 2023/0 Comments/in Diminished Value Claims/by competenow

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.

Who Can File A Loss Of Value Claim?

August 28, 2023/0 Comments/in Diminished Value Claims/by competenow

If you were recently in an accident, you may be wondering how much of your vehicle’s value was lost and if you can get some of it back. This is called diminished value and is something that occurs after a collision when your vehicle can’t be restored to its pre-accident value.

Below, learn who can file a loss of value claim and how to get the legal help you need from our experienced Massachusetts diminished value attorneys.

High-Value & Luxury Vehicle Owners

Owners of high-value vehicles that have been damaged in a collision usually recover the most from a diminished value claim. The starting value of a vehicle generally plays the biggest role in how much money you can get back from your insurance company. This is especially true if the car is high-value, has few miles, and sustained a great deal of damage in the accident.

For example, a 2019 Rolls-Royce Dawn is a luxury car that currently sells for around $350,000. If the vehicle had 40,000 miles on it at the time of the accident and it received critical structural damage, you could get back as much as $21,000 with a claim.

New Car Owners

New cars are also higher in value and tend to bring in more from a diminished value claim than older cars. This is because newer cars almost always have less mileage on them, which is another significant factor in calculating how much you could get from an IDV claim.

In this example, let’s take a look at a 2023 Toyota Corolla, which is worth about $21,700. Say the car sustained major damage in an accident and only had 12,500 miles on it. In this case, you could get back a maximum of $1,627.

Businesses With Commercial Vehicles

Business owners that use commercial vehicles for their establishments can also file a diminished value claim if one of those vehicles is involved in an accident. Heavy equipment like semi trucks, garbage trucks, cement mixers, and other specialty commercial vehicles are expensive and can lose a lot of value in a collision.

A brand-new 2023 Peterbilt 579 can sell for around $200,000. If it has less than 20,000 miles and was moderately damaged in a collision, the maximum amount of reimbursement from a diminished value claim would be $10,000.

How Do Damage & Miles Affect The Claim?

Insurance companies generally consider the lost value of a vehicle to be 10% of the vehicle’s current market price. So if your car costs $35,550, this would add up to $3,500. Then, you have to subtract value if your car has more mileage or the damages aren’t as severe.

If your car is totaled, you’ll get the maximum amount of reimbursement. Any other damage is graded between minor, moderate, and major. The less damage there is to the vehicle, the less money you’ll get back. So if the $35,550 car above had only minor structural damage and had accumulated 80,000 miles before the accident, your claim would only be worth about $177.

How To Calculate Diminished Value

Finding out how much money you could get back from an IDV claim isn’t as complex as it initially seems. Learn how to calculate your vehicle’s diminished value after an accident here and crunch the numbers for yourself to see what your maximum reimbursement would be.

When Should I File?

Filing a diminished value claim should be done soon after the accident, but many people wait until the repairs are done and their car or truck is repaired and restored to the best possible condition, especially if an insurance company is footing the bill.

However, you don’t want to wait too long – if the statute of limitations passes first, you won’t be able to file a claim. In Massachusetts, the statute of limitations for auto accident filings is three (3) years from the date of the accident.

Find Out How Our Diminished Value Lawyers Can Help You

Whether you have a luxury car or something basic, you have the right to seek compensation for the lost value of your vehicle after an accident. It’s important to work with an experienced car accident lawyer to help you navigate the challenging legal process.

Our diminished value attorneys can provide you with skilled, comprehensive representation when you need it most. Contact us today to get more information about filing a diminished value claim or to schedule an initial consultation by dialing (978) 744-8000.

What To Do If Your Depreciated Value Claim Is Denied

August 25, 2023/0 Comments/in Diminished Value Claims/by competenow

After your vehicle has been in an accident, you may be able to file a claim with your insurance company for the lost value in your car. This is called depreciated or diminished value. But what happens if your depreciated value claim is denied? Here’s what to know first and what you can do to appeal the decision.

Reasons For Denial

Finding out that the time and effort you put into filing a claim was all for naught because it was denied can be a tough blow. There are several reasons why an auto insurance company may decide to deny your diminished value claim, including but not limited to:

You didn’t pay your insurance premiums. If your policy wasn’t current on the date the accident took place, your insurer will likely deny the claim.
Not enough evidence was provided. Your insurance company may deny your claim if you fail to provide enough supporting documents to show how the accident occurred and what repairs were made to your vehicle afterward.
A non-covered driver was operating your vehicle at the time. If someone who isn’t listed on your policy was driving when the accident happened, the insurance company may deny the claim on the basis that the collision wasn’t covered. But some policies cover the vehicle itself, regardless of who was driving, so you’ll want to check to make sure.
The details of the incident don’t match up. If the police report or witness statements don’t match up to your account of the accident and how it happened, the insurance company may suspect fraud and deny your claim.
The insurance company finds that you violated the terms of your policy. When you take out an insurance policy, you agree to the terms set forth by the insurer, whatever those may be. If you fail to adhere to these and the company finds out, they can use this as a legitimate reason to deny your diminished value claim or even drop your policy altogether.

Fortunately, most claim denials can be appealed and in many cases, the initial decisions are reversed and the insurer approves the claim. However, appealing a denial for a diminished value claim is complicated and usually requires the assistance of an experienced car accident attorney.

Follow these steps to appeal your case and increase the chances of a favorable outcome:

Get A Complete Copy Of Your Policy

The first step to filing a depreciated value appeal is to get a copy of your entire policy and sit down with it to read and understand your coverage. It’s important to know what your policy does and doesn’t pay for going in, so if you get denied, you’ll know if it’s for a legitimate reason.

Often, it’s not and you can easily find in your policy language where your claim ought to be covered. If you point this out to the adjuster working on your case, you may be able to get your claim approved right out of the gate.

Get A Copy Of Your Denial Letter

Insurers are required by law to inform you of why a particular claim was denied. Usually, this is in the form of a letter that’s mailed to your home. You may also get a phone call before the letter is sent.

Look for the reason for your denial on the letter and compare it to your policy documents. If there are any discrepancies, they can be included in an appeal.

Determine Your Insurer’s Appeal Process

Before you filed your diminished value claim, you probably contacted your insurance company to find out what the correct process was for filing. You’ll do the same thing if you need to file an appeal. Ask what steps you need to take and what documents need to be sent in to support your case. Then, follow these exactly to submit your appeal.

Reclaim The Lost Value In Your Vehicle Today

Getting into a motor vehicle accident is something you least expect, especially if you did nothing to cause the collision. No matter how good the repairs are, your car won’t ever be able to be sold for its pre-accident value. But under new laws in Massachusetts, you can recover the lost value in your vehicle from your insurance company if it’s a covered claim.

Contact us to learn about diminished value claims, how to file a claim for diminished value, and what you can do to get compensation for the lost inherent value of your car by calling (978) 744-8000.

How To File A Diminished Value Claim With Your Insurance Company

August 24, 2023/0 Comments/in Diminished Value Claims/by competenow

After an accident, your car inherently loses value, even if you have it repaired to perfect condition. This means you can’t ever sell it for what it was once worth, resulting in an overall loss. The amount varies but can range between a few hundred dollars to several thousand depending on the value of your vehicle.

In Massachusetts, you can now file a claim with your insurance company for reimbursement for this lost value. Here’s how to get started and what our qualified diminished value attorneys can do to help.

Find Out Your Insurance Company’s Filing Process

First, contact your insurance provider to find out the process you should follow to file a diminished value claim. You’ll want to make sure you have all the documentation you need and anything else your insurance company requires ahead of time before you file. Otherwise, your claim could be denied.

Calculate Your Car’s Diminished Value

Next, you’ll want to find out how much value your car actually lost. To do this, you’ll need to figure out the value of your car before the accident and apply several multipliers based on your car’s mileage and the amount of damage that was done to it in the collision.

The more mileage on your vehicle at the time of the accident, the less money you’ll get back in a diminished value claim. This is because as cars accrue mileage, they inherently lose value, and you can only get back a percentage of the market value that your vehicle had just prior to the accident.

Learn how to calculate your car’s exact diminished value here.

Provide Documentation Of The Damages

Next, you’ll want to provide as much information as possible about the accident and the damage it caused to your vehicle. Spare no detail about what led up to the accident, what happened during the collision, and what you and the other vehicle’s driver did right afterward. You’ll also want to provide documentation about the repairs you had done, what materials and parts were used, and where you had them done.

It’s important to provide clear documentation of how and why your car lost value and how much value was lost. Otherwise, your claim could be denied on the basis of incorrect or not enough information.

File Your Claim

Finally, it’s time to file your claim. Make sure you follow the exact process you were instructed to use and include as much relevant information and documentation as possible. Your claim form should be correctly filled out and without errors, since many insurers deny claims for simple mistakes like a misspelled word or wrong date.

Make a copy of the signed form for your records and keep it somewhere safe, like in a filing cabinet at home or even a safe deposit box at a bank. If for some reason the insurance company tries to say you didn’t file, you’ll have a copy of the document and the date it was filed on hand to prove your case.

Appeal The Decision

If your claim was denied, you may be able to appeal the decision. Start by asking your insurance company why you were denied. You should be able to get an official statement from your insurer if they haven’t already sent you one automatically.

Then, you can compare your reason(s) for denial to your insurance policy to determine if the insurer is following your specific policy coverage. If you shouldn’t have been denied, then you can file an appeal to ask for your case to be reconsidered.

For example, if your policy allows claims to be made for 6 months following an accident, and you were denied because you filed outside of their time frame, you would need to show that you filed within 6 months of the date of the accident. Ideally, the decision would be reversed and your claim would then be approved.

Need Help? Our IDV Lawyers Are On Your Side

If your vehicle has been in an accident, you may be able to recover its lost value through your insurance company. Our veteran diminished value car accident attorneys can help. Contact us now to learn more about filing a diminished value claim or to get legal help by calling (978) 744-8000.

We can guide you through the process of filing an IDV claim to get back the lost value in your car after you were involved in a motor vehicle accident step by step, so you can be confident about the legal decisions you make.