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DIMINISHED VALUE CLAIM
Everything You Need To Know About Diminished Value & Filing a Diminished Value Claim
When you are involved in an accident that was not your fault, it is important to know what a diminished value claim is. This is because the average diminished value claim is more than two thousand dollars! States like Florida recognize the concept of diminished value, so if you’re in Florida and have been involved in an accident, you might be able to make a claim for diminished value. Though, depending on the state where the accident occured in, some states do not recognize diminished value at all. Then, there are other states who recognize it but the insurance companies commonly act to devalue your diminished value claim or avoid paying your legitimate diminished value claim out right.
Here on our diminished value page, we will provide all the information you need to know about what diminished value is and the how to approach a diminished value claim.
Let's get started...
The first and most important question is
"What Is Diminished Value?"
Diminished value refers to the amount of money a car loses when it has been involved in an accident and repaired. It's typically calculated as a percentage of the car's original purchase price or appraised market value before it was damaged.
In the state of Florida, drivers who have been involved in car accidents may be owed compensation for diminished value (DV). This is a quantifiable amount based on what it would cost reasonable consumers to purchase or appraise similar vehicles with no accident history. Thus, any vehicle that has had repairs due to an incident must first be effectively compared against cars within 90 days' time frame and within a 75 mile radius from the accident vehicle's location — noting variables such as year, make/model and condition-based mileage — before potential DV can accurately assessed.
There are three primary types of diminished value claims that motorists should be aware of: Inherent Diminished Value, Repair-Related Diminished Value, and Collision-Related Diminished Value.
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Inherent Diminished Value is a type of claim that occurs when a vehicle is damaged in an accident and the repairs don’t bring it back to its exact pre-accident condition.
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Repair-Related Diminished Value occurs when a vehicle is repaired poorly, resulting in a lower value than what it was before the accident.
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Collision-Related Diminished Value occurs when there are mechanical or structural anomalies with the car that result from an accident and repair work done on the car. This type of claim is typically the most difficult to prove and requires a professional inspection.
Getting the compensation you deserve for a diminished value claim can be tricky. It all depends on the at-fault driver's auto insurance policy, accident circumstances, and other contributing factors that could affect how much restitution is owed to you as an injured party.
How To File A Diminished Value Claim
Personal filing of a diminished value claim without the involvement of a lawyer can be done, but it requires careful research and understanding to ensure success. The first step is to understand how much your claim is worth and how it is calculated. Generally speaking, the amount you may receive from a diminished value claim will depend on numerous factors such as but not limited to the type of vehicle, how old it was at the time of damage, how severe the damage was, and any previous damage history. It is important to note that there may be other damages associated with an accident such as loss of use, so it is important to consider all potential damages when figuring out how much you should be compensated.
Once a rough estimate of how much your claim could be worth has been determined, contact the at-fault driver's insurance company and ask them if they cover diminished value claims. If you search around the internet you may be able to find and download a free diminished value claim template. Compare a few different ones so that you have a much better idea on what to write and how to properly make your claim.
The process of filing a diminished value claim is relatively simple but claim factors can vary depending on which state you live in and where the accident occured. The intricate part is rather collecting a fair diminished value check that makes you feel 100% whole.
If the at-fault's insurance company denies the case or does not cover diminished value claims, then consider hiring a lawyer who is very knowledgeable in auto accident cases and has experience with filing diminished value claims. Here at The Sheldrick Law Firm we understand how to properly file a diminished value claim and collect on a diminished value claim! We aim to ensure that everything goes smoothly from start to finish.
Overall, filing a diminished value claim can be done without a lawyer, but the best way to have success is to have a thorough understanding of how much your claim could be worth and how to properly approach it. Keep in mind that not all states recognize or allow for diminished value claims, so research whether or not yours does before attempting to file one yourself or hiring a lawyer.
AFTER YOUR VEHICLE IS DAMAGED FROM AN ACCIDENT THAT WAS NOT YOUR FAULT, FILING A DIMINISHED VALUE CLAIM WITH THE AT-FAULT DRIVER'S INSURANCE COMPANY SHOULD BE ON YOUR LAWYER'S TO-DO LIST!
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How Much Is Your Diminished Value Claim Worth?
When trying to come up with a diminished value estimate for a car, there are several factors to consider. These include but are not limited to the make and model of the vehicle, the pre-accident condition of the car, how severe the damage is, how well it was repaired, and how many / if any previous accidents were reported on its title.
When it comes to pre-accident condition, the worse a car’s condition, the less its diminished value will be. This does not mean that if you have an older vehicle with some wear and tear on it that you cannot file a diminished value claim. It simply means that the amount of money you can expect to receive from your claim may not be as much as someone with a newer car in pristine condition.
The severity of the damage is also an important factor to consider when it comes to estimating a diminished value claim. If the accident caused severe structural or mechanical damage, then you can expect your claim amount to be higher than someone with only minor cosmetic damage.
Lastly, how well the repairs were done can also affect the amount of money you receive from your claim. If you had poor repairs or shoddy workmanship, then this too can reduce the amount of money you will get in return for your diminished value claim. Be sure that the bodyshop is your vehicles brand's certified bodyshop and that any & all repairs are to be done with OEM (original equipment manufacturer) parts.
It can be difficult to estimate how much your diminished value claim is worth, so it may be beneficial to consult with a professional appraiser who has experience in determining how much a vehicle’s value has diminished due to an accident. A professional appraiser who is familiar with diminished value and loss of use should be able to write up a detailed appraisal report that can be used to support your claim. The price of hiring a professional appraiser varies, but it is typically around $350-$750. That most likely does NOT include their time, in the event a court appearance is requested. So be sure to do some research and add up these factors to better determine your vehicle's diminished value.
What's the Difference Between
Hiring a Diminished-Value Lawyer
or
Not Hiring a Diminished Value Lawyer?
Hiring a diminished value attorney gives you many advantages in pursuing and collecting on a diminished value claim.
When hiring a devoted diminished-value lawyer, such as Kayla from The Sheldrick Law Firm, she will be able to identify all the factors related to your diminished-value claim and help you calculate the amount of money you could potentially receive for it. This includes but not limited to filing and defending a demand letter that outlines your diminished value claim, along with a diminished value report, and any potential loss-of-use claims.
Additionally, a Florida diminished value attorney can help make sure that all applicable laws are being followed while negotiating with insurance companies - making sure that no stone is left unturned when it comes to getting the full compensation you deserve. With particular knowledge in such a unique niche of property damage, hiring an attorney that is familiar with diminished value state wide will help you have a greater chance of success in obtaining maximum benefits when filing your diminished value claim.
Overall, diminished value lawyers are the professionals to hire if you want to maximize your (DV) claim and get justice for your vehicle damages. With our help, you can ensure that all avenues of compensation are explored so that you receive the maximum compensation for your losses.
Contact our diminished value claim attorney Kayla Sheldrick today!
Key Factors to Maximizing Your Diminished Value Claim
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Negotiating a higher diminished value requires obtaining appraisals and inspections from reliable third parties.
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The results of these evaluations can then be used as leverage in negotiations with insurers or other parties involved in the claim process.
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How much time after an accident do you have to file a diminished value claim?
After an auto accident caused by someone else, you may be able to recover some of the money that your car has lost in value. But act quickly - filing a diminished value claim is best done soon after the incident and there are statutes of limitations on property claims. Furthermore, as time goes on it will become harder for you to provide evidence in support of your case and demonstrate exactly how much market value was reduced due to any damage sustained during action; so make sure to pursue justice swiftly!
For example, in the state of Florida, the statute of limitations for a diminished value claim is two years, giving you a set amount of time to file the claim and seek appropriate compensation. Many states have similar regulations in place and it’s important to be aware of these rules when filing your claim. The sooner you act the sooner you can get legal advice on your matter.
When pursuing a diminished value claim, consider enlisting the help of an experienced attorney for assistance as they can provide legal advice.