An accident can wreck your vehicle’s value, but it doesn’t have to come out of your pocket!
The at-fault party’s insurance company may owe you a check for the reduced value of your vehicle. In most states, you can file a diminished value claim with the at-fault driver’s insurance company. Filing a diminished value claim intends to compensate you for your automobile’s loss in value following an accident.
Less than 7 years old
Has under 100,000 miles on its odometer
Does not have a previous accident history. If it does, the previous damage must be minor.
You own your automobile. Leased vehicles won’t qualify. However, financing or making loan payments is acceptable.
Another driver was at fault for the accident.
Why hire DVCHECK for help with how to file a diminished value claim?
We’ve helped people recover millions of dollars over the years.
Expert guidance from the beginning to the end of your claims process
Top-rated appraisal company in the country with hundreds of 5-star reviews and an A+ BBB Rating
Experienced, certified auto appraisers that provide personalized attention to each claim
A risk-free experience with our money-back guarantee to ensure you’ll recover more than the cost of the appraisal report fee
Accidents lower an automobile’s worth. Even if repairs bring your damaged car back to optimal condition, it will take a hit in value.
Because accident damage will destroy the demand for your vehicle. Anyone interested in buying your car after an accident is going to want a steep discount to assume the risk of future problems, expenses, and safety concerns.
Diminished value is the difference between your car’s pre-accident market value and its worth after getting repaired. This reduction in automobile value is different from what you’d see in a time-based car depreciation value claim.
There are three types of diminished value.
The difference in market value immediately before the harm and immediately after the loss (before repairs).
Example: A vehicle was worth $25,000 just before being damaged and now in its damaged state, it is only worth $7,000 because the damage hasn’t been repaired yet.
$25,000 – $7,000 = $18,000 (Immediate Diminished Value)
Most people have their vehicles repaired after accidents. Because of that, this option isn’t a commonly made type of depreciation value claim.
Also referred to as a Residual Diminished Value Claim, it’s the difference between a vehicle’s market value before the harm and its lesser value after it is repaired. Inherent diminished value is a result of the accident/damage history.
Repairs can restore a portion of a damaged vehicle’s lost value, but not all of it. Despite repairs, the value of the vehicle is still less than what it was before the damage occurred, because it now has a damage history.
This is the most common type of depreciation value claim. It’s also the type an insurance company will compensate you for.
Example: A vehicle was worth $30,000 just before being damaged. After being properly repaired, it’s worth $24,000.
$30,000 – $24,000 = $6,000 (Inherent Diminished Value)
Even with top-notch repairs, potential buyers are unwilling to pay as much for a previously damaged car.
This means a vehicle’s market value has gone down due to substandard collision repairs. This may include something such as mismatched paint or misaligned body panels where the gaps are noticeably off.
Repair-related depreciation value claims are usually the responsibility of the repair facility. Because it was the repair shop’s fault, it falls outside the scope of what an insurance company would typically compensate you for.
*This type of claim exists to let vehicle owners seek potential compensation after their automobile sustains damage they weren’t responsible for.
*Georgia does allow drivers to claim diminished value after at-fault accidents and not-at-fault accidents. Georgia law requires that insurance companies assess diminished value on all auto claims.
If you’ve been in a car accident, you must prove your claim.
The best way to prove your claim is by getting a diminished value appraisal from a licensed and experienced independent appraiser.
An independent appraiser must be:
Proving diminished value takes the skills of a competent auto appraiser. Unfortunately, not all diminished value appraisal reports are equally created. Many low-quality appraisals exist from unqualified appraisers and unsupported opinions. Automated software also yields poor results.
Insurance companies want a high-quality independent appraisal from an industry expert with relevant qualifications and experience. They want appraisals that contain market data and facts.
That’s what you’ll get with a DVCHECK appraisal. The insurance company sees a data-driven report created by a licensed appraiser. Our appraisals contain real market data and facts that support your diminished value claim.
We’ll guide you through the claim process, help you overcome insurance company defenses, and help you build up your documentation.
Pick the wrong appraisal company or submit the wrong documentation and you could be in for a long, drawn-out process.
Most claims will take anywhere from two to six weeks to settle. Some depreciation value claims settle even quicker.
The more you follow up with the insurance company, the quicker the process will go.
If your claim is dragging on and the insurance company isn’t being responsive, try filing a complaint with your state’s Department of Insurance.
Every state has an insurance department that handles state-wide complaints and regulates the insurance industry.
This department helps hold the appropriate insurance provider responsible while ensuring this company responds to your claim.
To recover the full amount of your diminished value you’ll need to follow these steps:
1. Document the amount of your lost value by ordering your diminished value report.
2. Use our sample diminished value demand letter and submit it to the at-fault insurance company along with your documentation.
3. Negotiate the amount of diminished value with the insurance company.
4. Recover your diminished value.
The key to recovering the full amount of your diminished value loss is to present the insurance company with a comprehensive, professionally prepared estimate of your diminished value. You’ll dramatically increase your chances of maximizing your recovery from the insurance company by presenting them with a report prepared by a knowledgeable, experienced expert with the right qualifications and credentials.
IF YOU WERE AT-FAULT AND CAUSED THE CAR ACCIDENT, you’ll be making a first party claim against your own insurance company provided your policy has coverage for diminished value. Some states such as Georgia will allow you to demand payment for diminished value even if you were at fault in the accident.
They’re in business to make money, just like any other company.
It’s important for insurance companies to control costs and keep their claim payments low.
So as you’re working with them to repair your vehicle, don’t expect them to coach you through the process of filing a claim for your diminished value.
Here’s what you may experience from some insurance companies after your car accident:
• Silence. They’ll move quickly to help you repair your vehicle but they won’t be helpful if you ask them about diminished value.
• Some insurance adjusters who inspect your vehicle won’t be familiar with what diminished value is or how it works.
• Other adjusters or insurance company representatives might make false statements such as “your state doesn’t allow a diminished value claim” or “the insurance company won’t pay for diminished value”.
All of the above are due to a general lack of knowledge about diminished value in the insurance industry.
If you are driving a newer vehicle with no previous collision history and you’ve experienced damage in an accident, the answer is yes. If you have an older vehicle that has a previous accident history and very little damage in your most recent accident, the answer is no. However, there can be a wide range of situations within these guidelines and you should not assume from these guidelines that you don’t have diminished value because you may lose your opportunity to file a claim.
Don’t guess. Get Your Free Estimate to assess your present situation.
Your diminished value is what your vehicle was worth before the accident less price adjustments requested by potential buyers based the fact that your vehicle was involved in an accident. The nature of the damage, the age of the vehicle, and the quality of the repairs performed are all factors when calculating diminished value.
Once your vehicle has a history of accident damage, likely buyers of your vehicle will not be willing to pay the same amount for your vehicle when compared to a similar vehicle they could buy with no accident history.
To maximize the amount of your diminished value recovery, you’ll need an independent professional to provide you with an expert assessment of your diminished value loss.
No state laws or insurance regulations specify how to calculate diminished value. Laws define what you’re legally entitled to collect. However, there’s no guidance about diminished value.
Case law in most states defines diminished value in two ways:
These calculations require extensive knowledge of automobiles, insurance, and the claims process. Contact DVCHECK for help from a team of experienced and certified vehicle appraisers.
Typically, if the accident wasn’t your fault, you would file a claim with the at-fault driver’s insurance company — it’s covered under their property damage liability.
If the accident wasn't your fault, you can file a claim in most states. You’ll need to submit your documentation and demand letter to the at-fault driver's insurance company.
You can do this via mail or email. The demand letter should specify the exact amount of diminished value that you’re claiming and set a time frame for a response.
You may be wondering when to file a diminished value claim. The ideal time is right after you get your vehicle repaired.
Every state has a statute of limitations (amount of time you have to make the claim). In most states, you have at least two years to file a claim, but you don’t want to wait until the last minute after learning how to file a diminished value claim.
If your claim is denied or if you receive a low offer, you’ll want to negotiate.
When you receive a low offer, you should make a counteroffer. Sometimes by coming down on your initial demand, the insurance company will increase its offer as a gesture of good faith.
Haggle and negotiate until they get firm with their offer.
Follow our diminished value recovery process. We’ll walk you through the entire process and help you recover the lost value your vehicle has suffered.
Yes. You should expect to recover a larger amount of diminished value for a newer car with lower mileage and less diminished value for an older car with higher mileage.
As a general rule, the best candidates for recovering diminished value are vehicles that are 7 years old or newer. While older vehicles can still lose value after an accident, it is a lot harder to convince an insurance company or a court that you should be paid for the lost value of an older vehicle. That’s because the amount of your loss will be insignificant compared to a newer vehicle. While your diminished value claim might be successful, you could end up spending a lot of time to recover a small amount of money.
If you’ve been involved in an accident, you should consult with an attorney before signing any releases presented to you by the insurance company. You might be asked to sign a release for bodily injury and a separate release for property damage to your vehicle. If that happens, you’ll need to work with your attorney to ensure that you do not sign anything that prevents you from negotiating and receiving your diminished value settlement.
If another party was at-fault and caused the car accident, you’ll be making a third party claim against the liability coverage provided by their insurance company.
Diminished value is the lost value of a vehicle with an accident history when compared to a vehicle with similar features that does not have an accident history. It is a loss in value that is above and beyond normal wear and tear and depreciation.
You can recover this loss in value by filing a claim for diminished value against the responsible parties insurance company.
