It’s common knowledge that a car’s value drops when you drive the car off the lot. The longer you keep driving it, the less money you’ll get.
And if you’re ever involved in an accident, the loss in value will be far more severe. After a car and truck accident, the value of a damaged vehicle drops even if it has been restored. In the event of a non-fault accident involving car damage, you should be aware that you may be entitled to compensation for this loss of value, known as diminished value.
The car Insurance Adjuster Inspects the Damage
Your car’s value will never be the same as before the accident, no matter how well the repairs were done or how high-quality the used parts were. To put it bluntly, many people don’t get it until it’s too late. While it may not be fair, the reality is that an accident will reduce the worth of your car.
The at-fault driver’s insurance company should compensate you for the loss in value of your car. Sadly, insurance firms have a history of unfairly undervaluing or outright rejecting claims of this nature. Here’s where the assistance of a personal injury attorney comes in handy.
Claims For Reduced Value
After a car crash, you might be able to seek compensation for the loss in value of your vehicle. Reimbursement for the depreciation of your car as a result of damage sustained in an accident is the goal of this claim. When filing a claim for diminished value, you can get back the money that your car is now worth less than it was before the accident.
If you want to file a claim for diminished value, you’ll need to show that your car’s worth dropped due to the collision. The best way to do this is to get an expert opinion on whether your car is worth both before and after the accident. The appraiser will consider the vehicle’s age, mileage, condition, and model to establish its pre- and post-accident value.
Possible To Bargain Down Declining Value?
However, there is no easy solution to this problem. Because of the unique circumstances surrounding each personal injury claim, the amount of diminished value that can be settled is also very variable. In settlement talks, personal injury attorneys often utilize decreased value assessments as a bargaining chip.
The 17c formula is frequently used as one approach to determining reduced value. Here, the number of miles on your car is factored into a formula determining the car’s depreciated worth. You will need to collect relevant data to apply this algorithm to your vehicle. Knowing the value of your car is also important. With this data, you can solve the equation and obtain a result.
The market technique is another tool for determining the value lost due to depreciation. This method considers the selling prices of vehicles that are identical to those under consideration. The extra work involved in finding similar vehicles makes this calculation technique more difficult. On the other hand, it may be a more reliable method of determining the extent to which your car has depreciated.
Tutorial On Recovering Loss Of Value
There is a two-year statute of limitations for filing claims for personal injuries and reduced value. The insurance company for the negligent motorist must be contacted through a demand letter if you want to file a claim for lost value. Include the following in your demand letter:
- What’s Your Name? – Your Address and Phone Number
- A note about the accident’s date
- A recounting of the mishap’s details
- Photographs of the resulting vehicle damage
- Evidence of the maintenance done to your car
Analysis Of Diminished Value
However, you have determined that you are entitled to a certain sum of money.
Claims for damages due to injuries are handled independently from those for diminished value.
That’s why filing a claim for personal injuries is the way to go if an accident has left you with a destroyed car. If your vehicle’s value dropped after an accident, you might be able to file a claim for “diminished value.”