When you have an accident in your vehicle, it is common for your car to suffer some kind of loss in value. This is because buyers are likely to be wary of a car that has been in an accident, so they will likely offer you less than what you would get for the car if it was in perfect condition. If you are upset by this, you may be able to file for diminished value compensation. But before you do, it is important to understand what this claim entails and how insurance companies handle these claims.
The first step in filing a diminished value claim is to prove the car’s value before and after the accident. You can do this by taking photos of your vehicle, ideally at the time of the accident, and also by obtaining an appraisal from a certified vehicle appraiser. Having this documentation can help bolster your case when it comes to negotiating with the insurance company.
Once you have the documentation, you can begin the process of calculating your diminished value. There are different formulas that can be used, but the basic calculation is figuring out how much your car’s resale value has been reduced due to the accident. To do this, you take your base loss in resale value and multiply it by the damage multiplier that is associated with your accident.
While you are making a diminished value claim, it is essential to stay in communication with the insurance company. This means calling them, or sending emails to keep the line of communication open. If you don’t do this, it may be difficult to get the compensation that you are owed. In addition, you should also make sure that you are filing your claim within the required time frame, as this is important to ensuring that your case is successful.
It is also important to understand that you can only file for diminished value if the other driver was at fault in the accident. This is because you typically cannot file for this with your own insurance company unless you have uninsured/underinsured motorist coverage. In addition, most auto policies have an exclusion for diminished value, so it is not covered by collision or comprehensive coverage.
When looking for a lawyer to help you with your diminished value claim, it is best to find one who specializes in this type of case. You can do this by asking for referrals from friends and family, or searching online for attorneys who have experience with diminished value claims. You should also research the attorney’s background, including their reputation and experience handling cases similar to yours. Finally, it is important to know that not all attorneys will charge the same fee for their services. Some will work on a no-win, no-fee basis while others may have a fee that is calculated based on the amount of damages awarded to you. Be sure to discuss this with the attorney before hiring them.