How do you get compensated for diminished value?
How Diminished Value Claims Are Calculated
- Step 1: Calculate the value of your car. Use a third-party tool, such as Kelley Blue Book, to find the market value of your car after the repairs are completed.
- Step 2: Apply a 10% cap to that value.
- Step 3: Apply a damage multiplier.
- Step 4: Apply a mileage multiplier.
How do you negotiate a diminished value claim?
How to negotiate a diminished value claim
- Proceed with caution if you caused the accident.
- Find the diminished value of your car.
- File a diminished value claim with your insurer and ask for compensation.
- Contact your state insurance commissioner or hire an attorney if all else fails.
Can you claim diminished value on a car?
California is a diminished value state, which means you may be entitled to the diminished value of your vehicle after an auto accident. The statute of limitation on diminished value claims in California is 3 years, and California does have uninsured motorist coverage for diminished value.
How much is a diminished value claim?
As a general rule, you should expect to recover 10% to 25% of the fair market value of your vehicle. That means if your vehicle has a fair market value of $30,000, your diminished value after an accident could be as high as $7,500.
Why do I need to calculate the diminished value of my car?
The primary reason an individual would need to calculate the diminished value of a car is to submit an insurance claim after an accident. Naturally, if a car can no longer run or has undergone significant cosmetic damage, it isn’t worth as much.
Can a driver file a diminished value claim?
The following states are known to allow drivers to file a diminished value claim with the at-fault driver’s insurance company: Accidents cause cars to lose their value regardless of how well repaired they are. If your car is damaged by an at-fault driver, you may be able to file a diminished value claim.
Who is responsible for Diminished Value in an accident?
If the at-fault driver has liability, they are legally responsible to pay for diminished value. If you are deemed to be the one who caused an accident, you are going to have a much harder time successfully filing a diminished value claim.
What are the different types of diminished value claims?
A diminished value claim can help recover the costs to bring your vehicle back to the market price before an accident. There are three types of diminished value. Each type relates to the depreciation in the cost of your vehicle after an accident. This is the most common and accepted form of car accident diminished value.