What To Do If Your Depreciated Value Claim Is Denied

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.