Car accidents can seriously damage all of the vehicles involved. The at-fault party’s insurance company is responsible for covering the costs of repairs. However, even after the vehicle has been completely repaired, it is worth less than it was prior to the accident. For this reason, it’s important for car accident to victims to understand how to file a diminished value claim.
What is a Diminished Value Claim?
Being in an accident can significantly lower the value of a vehicle–especially if there was a great deal of damage. A victim should never be left with a car that has a lower resale value because he was unfortunate enough to be involved in an accident with a negligent driver. Fortunately, car accident victims in this situation can file a diminished value claim to recover their losses.
For example, let’s say Kelley Blue Book values your vehicle at $15,000. But then, you are involved in an accident, and the value drops down to $12,000. Even though the car has been completely repaired, the fact that it was involved in an accident lowers its value by $3,000. In this case, you could file a diminished value claim to recover the $3,000 lost as a result of the other driver’s negligence.
Who Can File a Diminished Value Claim?
If your vehicle was badly damaged in a car accident caused by a negligent driver, you may be able to file this type of claim. The insurance company will want to know whether or not the vehicle has been involved in an accident before. If it has been damaged in the past, the insurance company could argue that this accident did not significantly lower its value.
Car accident victims can also file a diminished value claim if the repairs paid for by the insurance company lowered the value of the vehicle. For example, let’s say the insurance company paid for the vehicle to be repaired using inexpensive and used parts. Since the car had new parts prior to the accident, using cheap and used parts to repair the damage lowers the total value of the vehicle. Therefore, the victim has the right to file this type of claim.
The purpose of damages in a personal injury case is to make the victim whole again, which is why diminished value claims are so important. Victims must file this claim to ensure they are not financially impacted because of the other driver’s negligence.
If you have been injured in a car accident, contact Reisch Law Firm right away. Our personal injury attorneys will work tirelessly to ensure you are compensated fairly by the at-fault party’s insurance company. Schedule a free consultation today by calling 303-291-0555 or filling out this online form.