The value of your vehicle will always decrease after a car accident, regardless of the quality of the repairs. This loss is known as diminished value, and it’s particularly high for rare, exotic, and collectible vehicles.
While you can’t turn back the clock on a car accident, you may be able to recoup the lost value of your vehicle through a diminished value claim. This is based on an estimate of your car’s new market value, taking into account things like age, condition, mileage, and overall integrity of the vehicle. If successful, a diminished value claim can pay you back some of this loss, easing the sting of market value depreciation and minimizing the financial toll of a wreck.
Learn how to file a diminished value claim below, with our quick guide on preparing and submitting a diminished value claim for your luxury vehicle.
Before You File: Required Documentation
In order to prove diminished value, you’ll need to first prove a number of factors regarding the specifics of what happened and the pre-and post-accident value of your car.
To do this, you’ll need to supply insurance with sufficient evidence in the form of:
- Accident report and/or police report
- Repair documents (estimates, invoices, photos)
- Professional vehicle valuation
- Insurance policy information (if applicable)
Use a clear labeling system to designate different types of documents, and check the car insurance company’s diminished value policy to ensure you don’t leave any gaps in what you provide.
If you’re going to file a diminished claim online, hold on to all physical copies of your documents in addition to creating digital copies. This will help you stay organized, and can save a ton of time if/when you need to reference something later on.
How Do I Claim Diminished Value? Step-by-Step Guide
There are a number of standard steps to filing a diminished value claim that will need to be adhered to.
Step 1: Check the insurance company’s process: Online, physical, and mail submission processes may differ.
Step 2: Get a professional appraisal: Luxury cars face greater diminished value after a car accident. A professional appraisal is a must for figuring out the true cost of your loss and relaying it to insurance.
Step 3: Gather evidence: The more documents you can supply in support of your claim, the better.
Step 4: Write your claim letter: How your claim letter is written and submitted may vary based on the method you use.
Common Mistakes to Avoid When Claiming Diminished Value
The more careful you are with your claim, the smoother the process should go. Things to make sure you avoid include:
- Documentation errors: Such as incomplete documentation or a disorganized submission.
- Procedural mistakes: Missed deadlines, filing with the incorrect party, or failure to maintain records.
- Communication errors: Talking about your claim on social media or inconsistencies in your claim.
The best way to avoid mistakes with a diminished value claim is usually to work with a professional. Claims experts like our team at SuperCarClaim.com are experienced in high-value claims for luxury vehicles, as well as navigating initial filing rejections and handling complex multi-party situations. Get help preparing, filing, and managing your claim, and enjoy a higher success rate while doing significantly less work.
Get Help with Your Diminished Value Claim
When it comes to how to file a diminished value claim, the devil really is in the details.
SuperCarClaims.com specializes in diminished value and loss of use claims for luxury vehicles and can make sure your claim is properly organized and filed. Get in touch for support, and avoid the mistakes and missteps that can keep you from getting the insurance payout you deserve.
