Brian White | February 19, 2025 | Car Accidents
Most people are familiar with the process of filing a car insurance claim after getting into a car accident. If there are no issues, the insurance company will pay to repair the damage to your car.
However, many people forget that they have a right to file a diminished value car insurance claim. This can result in plaintiffs missing out on substantial sums of money that they are entitled to recover.
What Is A Diminished Value Car Insurance Claim?
A diminished value car insurance claim is a claim for payment for the difference in the value of your car after an accident, even if it has been repaired After a car is involved in a crash, it tends to decrease in value even if it is repaired. This is because buyers may be hesitant to buy a car involved in an accident even if it functions properly.
That means that you may be left with a car that is worth less than it was before an accident. You may be able to ask insurance to pay the difference. Check your policy to confirm the details.
Types Of Diminished Value Car Insurance Claims
There are generally three different types of diminished value.
The first is inherent diminished value. This means that the car’s inherent value decreased after it was repaired because of the accident.
The second is repair-related diminished value. This happens when the mechanic performs substandard repairs that actually decrease the car’s value.
The third is immediate diminished value, which is the decrease in a car’s value before repairs are completed.
What Is My Diminished Value Car Insurance Claim Worth?
Many factors can affect the worth of your diminished value claim. For example:
- Whether your car is new or old
- The condition of your car before the accident
- The type and severity of the accident
- The type and quality of repairs
- Who is at fault for causing the accident
- Whether the car has previously been involved in any other accidents
The insurance company will investigate these factors to assess your claim’s value.
How Do You Calculate Diminished Value?
One of the most common ways to calculate diminished value is to compare the prices of a similar car on the market before and after an accident. This often includes doing a survey of available market research and multiple different sources.
Another common way to calculate diminished value is to hire a professional car appraiser. An appraiser will look at all of the factors stated above and use their experience to determine the diminished value.
The final way to calculate diminished value is to apply the 17c formula. You can do this online. Insurance agencies frequently use the 17c formula. They consider several factors to decide the diminished value but usually cap it at 10% of the pre-accident value. This can be frustrating, particularly if your car has significantly diminished.
What Are The Steps In A Diminished Value Car Insurance Claim?
The steps to file a diminished value car insurance claim are similar to any other car insurance claim. First, you need to collect your evidence and file an insurance claim. Doing research or consulting an appraiser before submitting your claim is helpful.
If the insurance adjuster offers you a lowball settlement offer, you can negotiate for a full settlement. It is helpful to have an attorney to help you through this process. If you are unable to get a full settlement, you can file a personal injury lawsuit and go to court.
Should You Hire A Lawyer To Help With Your Diminished Value Car Insurance Claim?
It is always helpful to have a lawyer help with any insurance claim, particularly a diminished value claim. These can become complicated, but you may benefit from an experienced advocate on your side.
Contact a Houston Personal Injury Lawyer to Help You With Your Claim
For more information, contact the Houston personal injury law firm of Attorney Brian White Personal Injury Lawyers by calling (713) 500-5000.
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