How to File a Diminishment of Value Claim for Your Car
When your vehicle is involved in an accident, a quality auto body repair shop will be able to restore it to its pre-accident condition, so that a potential buyer will not be able to tell whether anything had ever happened to the vehicle. Car buyers, however, are using automotive history services more often these days, and the insurance claim for your accident will be reported to one of these services. When a prospective buyer finds out that the vehicle has been in an accident, he will want to pay less for it. The responsible insurance company may pay for this reduced value.
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Instructions
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Contact your insurance company to initiate a claim after an accident. If you have full coverage insurance, your insurance company is the first place to start for a claim. They will get the claim process started so that you can get your vehicle repaired. You will be responsible for the deductible on your policy until the insurance companies involved determine who is at fault. If you do not have full coverage insurance, contact the other driver's insurance company to begin the process if the accident was the other driver's fault.
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Determine the value of your vehicle before the repair. You can do this by using online resources such as Kelley Blue Book or NADA Guides. Input your vehicle's make and model, as well as mileage and any options that the vehicle is equipped with. The websites will give you the retail and wholesale value.
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Determine the value of the vehicle after repairs. You may need to have the vehicle appraised to determine the loss of value. A car dealership may be able to provide you with the value after the accident, or you may need to consult with a professional auto appraiser. The value that a car dealer gives you will probably be the wholesale value, so compare this price to the wholesale price that you received for a vehicle without damage.
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Contact the insurance company and tell them that you want to file a claim for diminished value. If the accident is your fault, you will probably be denied this claim by your insurance company. If the other driver's insurance company paid for repairs, you may have more success getting the claim paid. Insurance companies consider the circumstances of the accident -- for example, if the accident involves personal injury or gross negligence, such as drunk driving.
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Tips & Warnings
If your diminishment of value claim is denied, you can file a suit in small claims court. You will have a chance to present your case and let a judge determine the outcome. Be sure to file a claim for the reduced value of your vehicle at the time of the accident, before the claim is settled.
Court cases in many states have denied diminished value claims. These decisions state that auto insurance is only responsible for repairing the vehicle to its pre-accident condition.
