Diminished Value Claims – What You Need To Know
Someone hit and damaged your car, and their insurance company paid for the repairs. Is your claim over? Most likely, no. You may have a claim for “Diminished Value.” Here’s what you need to know.
What is Diminished Value?
Diminished Value is the loss of the market value sustained by a vehicle that was repaired. Put simply, a vehicle that was involved in a crash and then repaired is worth less in the open market than the exact same vehicle that was not involved in a crash.
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Alabama Law
Alabama is one of the few states that allows diminished value claims.
There are three types:
- Immediate: the difference in the vehicle’s value before and after the crash.
- Inherent: the loss of value simply due to the crash itself.
- Repair-Related: the value lost due to shoddy repairs after the crash.
How is Diminished Value Calculated?
There are several companies in Alabama that employ qualified experts to investigate whether a crashed and repaired vehicle has diminished in value and by how much. Such experts typically investigate whether had been repaired previously due to a crash or other reasons and compare vehicle-specific factors such as mileage and overall condition to similar, comparable vehicles on the market (known as “comps.”) to arrive at a diminished value. Costs associated with expert investigation are typically less than $400 and are typically a worthy investment.
Insurance Company Tricks
Oftentimes the insurance company for the at-fault driver who caused the crash will tell victims that they will only pay for the cost of repair but not for diminished value. This is simply false and a trick insurance companies play to deny a valid claim or frustrate the claimant to the point of dropping the claim. Don’t give up!
Contact an Experienced Diminished Value Attorney Today
If you were not at fault for a crash and the at-fault insurance company paid for the repairs to your vehicle, contact an experienced diminished value attorney today as your right to file a claim may be in jeopardy.