After a car accident, a vehicle that sustained damage will diminish in monetary value – even if it’s repaired and restored completely. The fact that the vehicle was involved in an accident is enough to reduce its market value. In California, you need to understand your right to file a diminished value claim and seek financial compensation for this type of loss.
What Is a Diminished Value Claim?
When a motor vehicle gets involved in an accident, it can sustain invisible damage to its frame, structure and mechanics. Even if the vehicle undergoes professional repairs with original equipment, it will never regain the state it was in prior to the accident. It will also carry the stigma of having been in an accident. Therefore, the vehicle will lose some of its resale value.
In California, the at-fault driver or party that causes a car accident is responsible for paying for the victim’s monetary losses. This includes paying for the difference in how much the victim’s motor vehicle was worth before the accident vs. after the accident (diminished value). The at-fault person’s insurance company can be held liable for a vehicle’s diminution in value.
Three Types of Diminished Value Claims
There are three types of diminished vehicle value in California. No matter what type of diminished value claim you have, you may be eligible for financial compensation from the at-fault party.
Immediate Diminished Value
After the car accident but before repairs have been made on the vehicle, the car will have an immediate drop in market value. A claim filed at this time can lead to a higher payout for more extensive property damage. However, it is more common for an auto insurance company to pay for repairs.
Stigma
Even after repairs have been made on the vehicle, however, its value will remain diminished. Motor vehicles can suffer lasting structural damage even after high-quality repairs. Even without any lasting damage, the value of the vehicle will be reduced simply due to the stigma of the crash. A vehicle with a crash history is worth less to buyers.
Repair-Related Diminished Value
Finally, if the repairs done on the vehicle after a car accident were not of the highest quality, the vehicle can experience repair-related diminished value. Common examples include aftermarket parts, used car parts, or a low-quality or unprofessional mechanic.
Diminished Value Claims in California
How to Calculate Your Vehicle’s Fair Diminished Value
It is important to know how to calculate the diminished value of your vehicle, as the value assigned by an insurance company may not be fair. Factors used to make this calculation include the initial value of the vehicle (pre-crash), the vehicle’s age and mileage, the severity of the property damage, and its current market value (post-crash).
Various formulas are used by insurers to calculate diminished value. Do not trust the initial value assigned to your claim by an insurance adjuster, however. Instead, hire an appraiser yourself or work with an experienced car accident attorney in Riverside to determine a fair value.
How Can a Lawyer Help You With a Diminished Value Claim in California?
Car insurance companies do not want claimants to maximize their settlements. Their main goal is always to protect their own profitability. A Riverside personal injury attorney, on the other hand, works for you. You can count on an attorney to help you pursue the highest possible case value, including maximum compensation for a diminished value claim.
Your lawyer can accurately calculate the reduced value of your vehicle and use compelling evidence to prove your losses to an insurance claims adjuster. You can rest and relax while an attorney negotiates a fair settlement or takes your car accident case to court, if necessary, to secure fair compensation for the diminished value of your vehicle in addition to other losses.