Do You Know What Diminished Value Is?
One aspect of property damage claims that is sometimes overlooked is that of Diminished Value or Diminution of Value of the vehicle. Diminished Value is the difference in the value of a vehicle after repairs have been made. All of us generally accept the notion that a vehicle, even one with quality repairs, is just not worth as much solely because it has been in a car accident. So where do we go from here?
When can I get compensated for Diminished Value and how do I show the amount of the Diminution in Value?
First, whether you can get compensated for Diminished Value depends on which insurance company you make the claim against.
Louisiana is a diminished value state, so if you’ve been in a car accident, you may be entitled to the diminished value of your vehicle. But what exactly is diminished value?
If you have questions about diminished value, call 1-800-537-8185.
Diminished Value is the amount of a damaged vehicle’s value from prior to the auto accident that has not been restored through the repair process. This can include the difference in resale value of the car or truck from immediately before the accident occurred compared to immediately after the damage, prior to the repair, which is known as “Immediate Diminished Value.”
Even if your vehicle has received quality repairs, it may still be subject to “Inherent Diminished Value” simply because the vehicle now has a history of significant damage. If your car or truck received less-than-optimal repairs and still has imperfections or defects as a result of the accident and repair process, it may fall under “Repair Related Diminished Value.”
The State of Louisiana and Diminished Value
For the most part, in Louisiana you can claim Diminished Value against the other person’s insurance, but not your own. This is because claims against the other person’s insurance are based on tort principals that require the defendant to compensate you for all of your damages. On the other hand, a claim against your own insurance company is based on your contract with them and the insurance companies write most of those contracts to exclude a claim for diminished value.
Second, you don’t get Diminished Value automatically after the vehicle was repaired. You have to prove the amount of the decrease in value of the car. The most common type of evidence in Diminished Value claims is a letter from a car salesman, usually a used car salesman, who states that that he has examined the repaired vehicle (even though the repair was a quality job) and based on his experience as a car salesman, that the vehicle now has a lesser value solely because it was in an accident.
The video below shows how to take action in claiming compensation for the Diminished Value of your vehicle.
Recovering Diminished Value can sometimes make a really big difference in the property damage claim for clients, particularly clients with very new vehicles where the decrease in value may be significant.
If you have been involved in a car accident, contact the personal injury attorneys at Morris Bart LLC to make sure that you get the compensation you are entitled to.