Filing a diminished value claim on your own can be a painstaking, long, and complex process, but a little documentation and preparation can go a long way. More often than not, insurance companies will offer an initial settlement that may not sufficiently cover the difference in loss of value, leaving many dealing with the aftermath of a lowball offer. Once you accept an offer to settle from the insurance company, you will not be able to make a later claim regarding the same accident for more money.
Here’s what you can do to build a strong case as you file a diminished value claim.
Requirements To File a Diminished Value Claim
Before you start filling out forms, it’s important to take some factors into account:
- Your vehicle’s value prior to the accident: Knowing how much value your car lost in the accident is a good way to start, as it can accurately get you an estimate on how drastically your car was affected during the crash. You can choose to calculate the diminished value on your own or resort to a professional car appraisal like American Auto Appraisers for help.
- Whether you were at fault: If you were the cause behind the accident or partially to blame, you may not be eligible to submit the claim.
- If the at-fault driver is insured: Remember to double-check whether the at-fault driver is insured; otherwise, your own insurance company will have to reimburse you for damages, if you have the right coverage.
- The state you live in: Every state comes with its own laws and regulations regarding diminished value, which is why it’s essential to look into them before making a claim.
State-Specific Diminished Value Law
Where you live plays a huge role in how you file your diminished value claim. For instance, if you were involved in a car accident that wasn’t your fault in the state of Florida, you hold the right to file a claim. Under Florida law, diminished value looks like:
- Statute of Limitations to File: 2 Years
- File First Party Claim: No
- File Third Party Claim: Yes
- Diminished Value Through Uninsured Motorist Coverage: No
- Small Claims Max Filing: $8,000
Factors That May Disqualify You From Filing A Claim
Just like the statute of limitations, there are certain aspects that may prevent you from filing you a claim:
- Your car is valued at less than $7,000.
- You have signed a release of liability form.
- There was minimal damage to your vehicle.
- Your vehicle has excessive mileage at more than 30k miles per year.
- Your vehicle is more than 10 years old.
- Your vehicle was salvaged or rebuilt.
- Your vehicle was badly damaged before the most recent accident.
- Your vehicle was totaled.
- The statute of limitations on your claim has expired.
How To File A Diminished Value Claim, Step by Step
Filing a diminished value claim may take time and energy, but it can be worth it in the long run and justify the amount of coverage you pay. Here’s what you need to do step by step:
Step 1: Gather documentation as evidence
A little documentation can offer some much-needed support throughout the process. Make sure you have photos and documents of the time of the accident to gain leverage. You may also need a police report, reflecting the time and damages, along with an independent car appraisal report that fully encapsulates the diminished value of the vehicle.
Step 2: Contact the at-fault driver’s insurance company
Reach out to the at-fault driver’s insurance company to receive coverage. Submit proper documentation, such as proof of accident and the difference in value prior to the accident and even after repairs have been made.
Step 3: File the claim and negotiate a settlement
Satisfy all the insurance company’s conditions for diminished value and file your claim. This may give you the best chance of having your diminished value claim approved. If the at-fault insurance company offers an initial settlement lower than your expectations, you can negotiate by submitting additional documentation from credible sources.
When Can You File A Diminished Value Claim
You can file a diminished value claim under multiple circumstances, like:
When you are not at fault: If you are involved in a car accident that wasn’t your mistake, you easily satisfy the conditions for filing a claim.
You were a part of a hit-and-run: In the event you were a victim of a hit-and-run accident, your own insurance company may cover the cost.
The motorist is uninsured: Many at-fault drivers may be uninsured, which is why this is the first question you should ask. In this case, you can file a diminished value claim with your own insurance company.
Secure Your Compensation With Certified Car Appraisals
Settling a diminished value claim can be a lot easier with a little help. At American Auto Appraisers, we offer certified diminished value reports that reflect the true value of your vehicle before and after the accident to help you receive the rightful compensation you deserve. On top of that, our car appraisers can also support you in court and offer professional insights to make the best next decision.
