Diminished Value Claims

HOW ARE DIMINISHED VALUE CLAIMS EVALUATED

Diminished value refers to the reduction in the market value of a vehicle after it has been involved in an accident, even after it has been fully repaired.

Here are some factors typically considered in the evaluation of diminished value claims:

1. Pre-Accident Market Value: The first step in evaluating a diminished value claim is establishing the pre-accident market value of your vehicle. This is typically determined by considering factors such as the vehicle's make, model, year, mileage, condition, and any prior accident history. This serves as a baseline for comparing the vehicle's value before and after the accident.

2. Extent of Damage: The severity of the damage and the repairs required to restore the vehicle to its pre-accident condition play a significant role in evaluating diminished value. Generally, vehicles with more extensive damage may experience a higher diminished value compared to those with minor repairs.

3. Quality of Repairs: The quality of the repairs conducted on your vehicle is an essential consideration. Repairs performed by reputable professionals using original manufacturer parts and following industry standards generally result in a lesser diminished value compared to substandard repairs.

4. Vehicle History: A vehicle's accident history can impact its market value. Even after repairs, potential buyers may be hesitant to pay the same amount for a vehicle with an accident history. The disclosure of the accident and repairs can affect its perceived value and, consequently, the diminished value claim.

5. Expert Opinions: In some cases, expert opinions from appraisers or automotive professionals may be sought to provide a detailed assessment of the diminished value. These experts consider various factors, including the vehicle's specific condition, comparable sales data, and market trends to arrive at an estimation of the diminished value amount.

Call the team at Jason S. English Law, PLLC now at 512-454-7548 to learn more and to get a thorough evaluation based on your specific circumstances.

It's important to note that the laws and regulations regarding diminished value claims vary across jurisdictions. Consulting with an attorney who specializes in personal injury or automotive law in your local area can provide you with the most accurate and relevant information for your specific situation.

Additional Questions to Answer to Qualify a Diminished Value Claim:

1. What is the year, make and model of the car and mileage?

2. How many prior accidents with that car?

3. What is the Kelly Blue Book Trade-In value of your car with the current mileage in “good condition?”

***Any diminished value settlements are a fraction of the car's value.  If the car is not worth more than $10,000 the recovery amounts typically don't justify the legal production cost for a law firm to take the case. 

4. Was the car towed into the repair shop?

5. Do you have the preliminary estimate and any supplemental repair receipts from the body shop?

6. Does the at fault driver have property damage insurance that is still available?

Reach out to Jason English and his now with answers to the six questions above at 512-454-7548 to evaluate your diminished value claim and guide you through the process.