Looking at your car after an accident is stressful. The first thing you might think about is repairing it well and returning it to top condition. However, reality is something else. Even if you get it repaired properly, your vehicle might not restore its value as it used to be before the accident. This is known as diminished value.
Now, you might be thinking about ignoring it or finding a solution. Fortunately, you have it! By filing a Diminished Value Claim in California, you can compensate for some of the losses. It is an efficient way to recover the financial loss from the at-fault driver’s insurance company.
Understanding Diminished Value Claim California
A car that is involved in an accident offers less value in comparison to one that has no accidental history. Some owners are not aware of the fact that they can regain this lost value by filing a claim, which is called a diminished value claim. However, it is not as convenient as it seems to be. Sometimes, the insurance company can deny and provide less value than you deserve.
Understanding the facts, such as how it works, the methods of calculation, and proving your claim, can help you make the most out of the process. In this article, we will cover the information that you need for filing a successful claim and maximizing its benefits.
Diminished Value Claim: The Types
Understanding three different categories before filing a claim can help you gain a clearer insight into the process:
Immediate diminished value
As the name suggests, immediate diminished value is the loss in the worth of your vehicle immediately after the accident. It happens before the repairs. The insurance company might not consider this for providing you the compensation. It is because they only tend to focus on your car’s value after repairs.
Repair-related diminished value
This type of claim happens when your car loses its value due to poor-quality repair or the use of cheap parts. When it shows the visible signs of damage even after the repairs are made, it leads to a decreased value.
Inherent diminished value
This is the most frequent type that occurs when the vehicle leads to its devaluation even after the repairs. This happens because of the accident history of your car, which can result in buyers losing interest in making the purchase.
Key Things to Consider When Proving Diminished Value
You need to prove the devaluation of your car after it was involved in an accident. The insurance company will need concrete proof to acknowledge your claim and compensate the deserving amount. Here are the key things you should take into account to make your argument stronger:
Auto Appraisal Report: A vehicle appraisal report from an independent and highly professional appraisal expert, such as ADR-Claims. They conduct a thorough evaluation and prepare a detailed and unbiased report.
Value Evidence Before Accident: Proof of the pre-accident value of your vehicle, showing its worth before the accident.
Vehicle History Document: Vehicle history report from Carfax or AutoCheck showing the accident is documented and now a part of your car’s record.
Repair Estimates: Detailed repair bills showing what parts were fixed or replaced.
With stronger evidence, the insurance company can take your claim seriously, reducing the chances of rejection or offering a low payout.
Tips to Maximize Your Diminished Value Claim in California
Here are some practical tips you can consider to maximize the benefits of a diminished value claim California.
- The first and foremost thing you can do is to know your eligibility for filing a claim. In California, you can only do that if you are not at fault for the accident. To prove it, you need to get it documented, stating who was at fault.
- As we discussed before, you will need some pieces of evidence to prove your claim and make your argument stronger. Keep all documents ready, including police report, repair invoice, vehicle history report, and more.
- A detailed report by a professional and independent appraisal service in California can also be crucial evidence. It can help in negotiating efficiently with the insurance company. Look for the appraisers from a trusted agency who specialize in diminished value.
- At first, the insurance company can start by providing a low payout or dismissing your claim. You need to be prepared for the negotiation. Make your evidence stronger to maximize your settlement with the help of expert appraisers.
- Sometimes, due to your own mistakes, you might lose on your claims. Make sure to avoid some mistakes – filing the claim too late, not seeking appraisal service, accepting what the insurance company offers, and not collecting enough documents.
- Know when you need to hire a lawyer who specializes in such claims and help you fight for fair compensation.
Key Takeaways
Filing a diminished value claim is an efficient way to recover the loss in your car’s value. But for a successful process, you need to gather all the required solid documents. Each evidence is important to support your argument, including the detailed report from a professional diminished value appraisal.
Contact ADR-Claims, which helps in making your negotiation power stronger. We provide an unbiased, detailed report you can use to strengthen your claim and get the fair compensation you deserve!
Make the smartest move by getting in touch with our team. We are here to help you every step of the way. Contact us for a free estimate today!
