Diminished Value (DV) refers to the difference in your car’s market value before and after the accident. Depending on the car’s age and condition, a car that has been involved in an accident loses value in resale than one in pre-crash condition. Even if the vehicle is repaired back to how it was previously, the value of your car will decrease. This can be very frustrating for the victim. This is why it is best not to rush into a settlement with the at-fault party’s insurance company.
You have to take into account the vehicle’s depreciation. DV claims help you regroup your car’s value. There are three types of DV claims:
Immediate Diminished Value: Filing this claim must be done immediately after being involved in a car accident, before any repairs are done to your vehicle.
Inherent Diminished Value: This claim compensates you for stigma damage. Stigma damage is a term used by insurance companies which implies the vehicle’s loss of appeal when compared to an identical vehicle in pristine condition.
Repair-related Diminished Value: This claim is filed if the repairer fails to complete the repair of your vehicle or does a poor job in fixing your vehicle.
Filing a Diminished Value claim can be done in five simple steps:
Look up your vehicle’s pre-accident value on a trusted site such as Kelly Blue Book.
Double check the state laws on Diminished Value claims.
Contact the insurance company of the at-fault driver.
Tell the agent or representative that their insured driver was recently involved in a car accident with you and that you are filing a Diminished Value claim.
Wait for the insurance company to complete their process and make their decision.
You can still file a DV claim even if you have already settled with the insurance company.
The at-fault driver’s property damage liability insurance covers a DV claim. DV claims vary by state, however in most states, the insurance company of the at-fault party will be required to repair or replace the vehicle. Filing a DV claim can be a lengthy process, let Your Accident Your Money take that off of your hands for you.
If you, or someone you know have been involved in an auto accident, call Your Accident Your Money at (888) 766-6398.