Diminished Value Claims – What You Need To Know

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.

Click Here for more information.

Alabama Law

Alabama is one of the few states that allows diminished value claims.

There are three types:

  1. Immediate: the difference in the vehicle’s value before and after the crash.
  2. Inherent: the loss of value simply due to the crash itself.
  3. 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.



Get In Touch Form

"*" indicates required fields

MM slash DD slash YYYY