WHAT IS DIMINISHED VALUE
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The first thing you need to do to make a diminished value claim is to get your car repaired. You can not make a claim for the diminution of value until all repairs are completed to your satisfaction. If there is a part of the repair that is not done correctly, you will want to have the shop correct the problem before you obtain a diminished value report.
This can be also explained by example. A 2000 Toyota Corolla with $2,000 worth of damage will not yield as high of a diminished value recovery as a 2008 Toyota Corolla with $4,000 worth of property damage. A 2006 Toyota Camry with $2,500 worth of damage may not yield as high a diminished value recovery as a 2005 Mercedes sl500 with $8,000 worth of damage.
Once your car is repaired to your complete satisfaction and you have received a diminished value report, you are ready to present your claim for diminished value.
The first question is to whom is the claim made. Most of the time it is either against the at fault driver’s insurance carrier or the at fault driver directly.
The process is actually quite simple. You notify the insurance company in writing that you are claiming diminished value and you provide them with proof of the amount you are claiming. See below for a free sample letter to an insurance company.
The question of whether a diminished value claim should be made depends on the amount of time and cost making the diminished value claim and the possible amount of recovery.
A good personal injury lawyer will always weigh the cost to client versus the possible recovery for client. You should do the same.
This is a question you will have to answer once you know the amount of your claim.
Many factors will go into deciding whether to settle. Of course, if the offer to settle is the same as your demand, then you should definitely settle the claim. But what if the offer of settlement is less than your diminished value report claims? At this point there are several things to consider.
First, the diminished value report you submitted is an estimate. As stated earlier, without selling your car, the diminished value is an educated guess and there is no guarantee that the report will be considered in full or partially by the judge of jury.
You should consider the cost of taking your claim to court. Those costs can include filing fees, subpoena fees and your time and energy to pursue the claim.
You should also consider your ability and comfort level with taking your claim for diminution of value to court without hiring a personal injury lawyer to handle the claim,.
Should I Settle My Diminished Value Claim?
Diminished value is the difference between the value of your car immediately before…
Below is an example of a letter that can be used to officially make the diminished value…
There are some things that can stop your diminished value claim in its tracks. It is…
This is best done in writing. Using the claim number you were given when you reported the claim to the at-fault driver's insurance company, send written notice to the at-fault insurance carrier that you intend to make a diminished value claim and that enclosed is a diminished value report as proof of the claim.
You should demand payment in the amount of (the dollar amount your diminished value appraisal report provides).
Once the insurance company receives your notice they should contact you to discuss their position. At this point you will be faced with the question: Should I settle my diminished value claim.
You can look at it this way:
Newer Car + Higher Damage = Higher Diminished Value
Older Car + Low Damage = Smaller Diminished Value
Not every car accident warrants a diminished value claim. The older your car is and the lower the amount of damage that your vehicle has incurred, are both factors that will determine the amount of diminished value you will be able to claim.
In order to make a diminished value claim you need proof of the diminution of value your...