Can You Claim Diminished Value After an At-Fault Accident?
Diminished value claims are typically only made against the at-fault party’s insurance company, not your own. We explain why this is below, with a few helpful tips on filing a diminished value claim after a car accident.
Types of Diminished Value Claims
A damage-causing accident will always decrease the value of a car, regardless of the quality of post-accident repairs. This loss is referred to as diminished value, and it could be particularly high for luxury, rare, and exotic cars, which face additional losses from an accident due to changes in the history and integrity of the vehicle.
There are three types of diminished value claims that someone can file after a car accident:
- Inherent diminished value: Loss in market value due to an accident and the vehicle now having a documented history of damage. This is the most common type of diminished value claim that individuals file after a car accident.
- Immediate diminished value: Loss in market value of a vehicle involved in an accident, but prior to completion of repairs.
- Repair-related diminished value: Lost market value due to low-quality or improper repairs. This is based on the assumption that the vehicle cannot be restored to its pre-accident condition, and that the substandard repairs contribute to a further loss in value.
No one wants to be in the position of having to file a diminished value claim, especially SuperCar owners. While a diminished value claim can be a great solution for recouping your losses, it’s not a guarantee. In some instances, you may be barred from seeking diminished value on your luxury vehicle, and that includes instances where you were at fault for the damages.
Can I Still Recover Diminished Value if the Accident Was My Fault?
No, in most scenarios, you cannot recover diminished value after an at-fault car accident.
When another individual is at fault for an accident, you can file a claim against their insurance, including any claims related to diminished value, loss of use, or total car loss. Things get trickier when you’re the one at fault though, since then you are filing a first-party claim against your own insurance.
That being said, because laws around diminished value at-fault accident claims vary by state, it’s always a good idea to speak with a diminished value attorney about your legal options before giving up on your claim.
Tips for Filing a First-Party Diminished Value Claim
If your state and insurance provider allow it, you can file a first-party diminished value claim and attempt to recoup some or all of the lost value of your exotic or luxury vehicle after an at-fault accident.
To increase your chances of compensation:
- Read your insurance policy. The more you know about your rights, the better. You’ll find all you need to know about whether you can file a first-party claim for diminished value – and how to do it – in your policy documents.
- Call an attorney. A car accident lawyer who specializes in collectible and high-end vehicles is your best bet at maximizing your potential settlement through a first-party claim.
- Gather your documents. Your attorney will do a lot of the legwork regarding gathering evidence for your claim, but you can make their job easier by collecting all records related to your vehicle, its condition, and the specifics of the accident.
Want to Know More About At-Fault Accidents and Diminished Value?
Our qualified attorneys are here to help. Contact SuperCarClaims.com for a free consultation, and make sure you know all of the options available to you as you seek compensation for diminished value after an at-fault car accident.
