Diminished Value Claim & How They Work
Diminished Value - Is the value based on a vehicle's value before and after the vehicle is involved in an accident. Majority of the time when a vehicle is in a car accident and the vehicle receives more than approximately $500 in damage worth of repairs, the vehicles market value will decrease due to the car accident being on the vehicles title going forward. It is very common for a diminished value claim to be filed after a car accident takes place.
Even if a vehicle is fully repaired after an accident, its value is likely to be lower than before the accident due to the fact that it has been in a collision. This is because potential buyers are often wary of purchasing a vehicle that has been in an accident, even if it has been repaired to its pre-accident condition.
When an accident victim files a diminished value claim, they are seeking compensation for the difference in the value of their vehicle before and after the accident. The amount of the claim will depend on factors such as the make and model of the vehicle, the extent of the damage, and the market value of similar vehicles in the area. However, if the vehicle has a prior accident on its title, the value of the diminished value claim may be reduced. This is because the prior accident on the vehicle's history report may already have reduced its value, meaning that the accident victim is not entitled to the full amount of the diminished value claim.
Additionally, insurance companies may argue that the prior accident contributed to the vehicle's decreased value, and therefore they may offer a lower settlement amount for the diminished value claim.
Florida is considered a Diminished Value state, not all states are considered a diminished value state. A state such as New York is NOT considered a diminished value state. Just because New York isn't considered a diminished value state though, this does not mean that an at-fault driver's insurance company won't pay out. If your matter can show proof that you have endured a detrimental loss, it may be a recognized claim. This means that in the event you get in a car accident that is somebody else’s fault in the state of New York, there is the chance that you may be negatively financially impacted due to somebody else's negligence. Depending on each case's specifications, it may or may not be worth the fight in court due to the state of New York not completely acknowledging DV.
Are you wondering if you can file a diminished value claim?
Retaining an accident attorney after an accident to represent you on behalf of your property damage claim which includes a "diminished value claim", gives you a much better chance at receiving a FAIR value for your diminished value claim. An attorney can recover a much larger settlement than an individual can when filing & collecting successfully on a diminished value claim against an at-fault driver's insurance company.
Want to know more information on filing a diminished value claim and if it is a good idea to do it yourself?
Check out one of our latest Diminished Value blog posts.
HAVE YOU RECENTLY WENT TO TRADE-IN YOUR VEHICLE AND NOW YOU ARE BEING OFFERED THOUSANDS OF DOLLARS LESS THAT WHAT YOUR VEHICLE WOULD BE WORTH IF IT WASN'T INVOLVED IN AN ACCIDENT?
If you've recently attempted to trade-in or sell your vehicle after it was involved in an accident, you may have experienced a significant reduction in its market value. Being compensated for the Diminished Value of your vehicle is crucial to ensure that you are not left with a financial burden as a result of an at-fault driver's negligence. Even if your vehicle has been fully repaired, the accident will forever be recorded on its vehicle history report, which can significantly decrease its market value. It is unjust for you to bear the financial consequences of someone else's wrongdoing.
Pursuing a diminished value claim can help you recover the difference in the value of your vehicle before and after the accident, and ensure that you are not unfairly penalized for a situation that was beyond your control. Seeking the assistance from an established diminished value accident attorney can help you navigate the claims process and maximize your compensation.
Contact our law firm today so that we can make sure that you are treated fairly and receive the correct compensation that you are rightfully owed!
The Sheldrick Law Firm
Personal Injury Law Firm
Phone: 561-440-7775
Locations: Florida, New York, New Jersey
Available: 24 Hours a Day, 7 Days a Week