How to Recover Damages for Diminished Loss of Vehicle Value Following an Accident

When a car or truck is damaged in an accident, the vehicle will have a diminished market value from that point forward. Even if the vehicle is successfully repaired and restored to its prior appearance, it's resale value drops. The diminished value is a recoverable damage element that should be sought from the at-fault driver or responsible insurance company whenever an accident occurs.

Instructions

Difficulty: Moderately Easy

1. After an accident, obtain complete contact information for the other driver’s automobile insurance company.
2. Visit a new or used car sales manager at a dealership that sells your make and model car. Explain you need to verify the loss of value to your vehicle and obtain a written statement that verifies the amount.
3. Present the loss estimate to the insurance adjuster assigned to your case and make a formal request for reimbursement of this amount, over and above the costs of repairing the vehicle. Be prepared to negotiate the final amount. The initial estimate is just one person’s opinion, and the insurer is certainly entitled to present a counter expert opinion. In such cases, a meeting in the middle is usually a fair resolution.
4. Follow through on the request and require payment before signing any release for the at-fault driver.

Tips & Warnings

• Insurance adjusters hate claims for diminished value because they see them as “found money.” If your vehicle is less than two-years old, this is a legitimate claim to which you are entitled.
• The amount of lost value falls with the age of the vehicle. Do not expect much diminished value for vehicles older than three years.