Who Can File A Loss Of Value Claim?

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.