If you have a vehicle with significant damage from an accident, diminished value is a potential claim that you can pursue. A diminished value claim is an insurance company payout for the difference in the resale or trade-in value of a vehicle after an accident and repairs.
Insurance companies use different calculations for diminished value, but they generally begin with a base loss of value. They may also add a “damage multiplier,” which is typically an amount that ranges from 0, which means no structural damage, to 1, which is major damage. The insurance company then multiplies the base loss of value by the damage multiplier to determine an adjusted or total loss of value.
How to File a Diminished Value Claim
When it comes to diminished value claims, documentation is key. The more evidence you can provide, the better your chances of receiving a fair settlement from the insurer. This includes documentation of your vehicle’s pre-accident value, as well as photos and records of the damages to your car from the accident. You should also consider getting an appraisal from a qualified professional.
Once you have this information, you should then notify the at-fault party’s insurance company of your intent to make a diminished value claim. They will review your documentation and then make a settlement offer. If you are not satisfied with the offer, you can continue to negotiate or even sue for a higher amount. It is important to have the right diminished value expert on your side, as these types of claims are more complicated than traditional insurance claims.
It is important to note that you cannot file a diminished value claim if your vehicle is leased. You can only make a diminished value claim if you own your car and the at-fault party was found to be at fault for the accident.
During the claims process, it is crucial that you have an attorney who can help ensure all of the necessary documents are properly prepared and filed. This is because even a minor mistake in the paperwork could lead to the denial of your claim. An attorney can also ensure that all the relevant information is included in your claim and that you are meeting the insurance company’s requirements.
A New York diminished value lawyer can help you get the best possible outcome in your case. They will have your best interest in mind as they work with the insurance company to reach a fair and equitable settlement for your loss. If you would like to learn more about how a diminished value expert can help you, contact our firm for a free consultation.
We are experienced in helping clients through the diminished value claim process. We will ensure all the appropriate documentation is submitted and work diligently to ensure you are receiving the maximum compensation for your claim. We are always available to answer any questions you may have about the process or your individual case.