Getting into a car accident can be a stressful and unsettling experience. However, after a body shop repairs your automobile, you may discover a nasty surprise that awaits many vehicle owners. It’s known as diminished value. Filing a diminished value claim can significantly reduce the financial impact if you meet the necessary requirements.
This post will guide you through every step of the diminished value claim process, especially if you’re new to it. We'll cover everything from understanding diminished value to navigating the claims process with Allstate.
Are you in good hands if you need to file an Allstate diminished value claim? Keep reading to find out.
A Quick Overview of Diminished Value
Whether you’re filing a diminished value claim for the first time or it’s been a while, it’s important to understand what the term means and why it matters. Diminished value refers to a vehicle’s drop in value after an accident and subsequent repairs.
Imagine two people selling your dream vehicle. One seller has an accident-free vehicle for sale. The other seller’s vehicle has been in a past accident, but it looks and performs well. You’d likely choose the accident-free car because you perceive the previously damaged vehicle as inferior, fearing it may not be original or could have hidden issues.
Unless they’re familiar with diminished value, most people don’t realize that dealerships and other buyers will factor in accident history when valuing your vehicle- even if it’s been fully repaired.
Does Allstate Pay Diminished Value?
Yes, Allstate will pay a diminished value claim in most instances. However, as with all insurance companies, results will vary on a case-by-case basis.
A great way to increase the chances of Allstate paying your diminished value claim is by presenting a certified diminished value appraisal as proof of the lost value.
Like any insurance company, Allstate has specific criteria your vehicle must meet to qualify for claim approval. These factors include the age of your vehicle, its mileage, prior accident history, extent of damage, and if another driver was at fault.
Where you live and where the accident took place also matters. For instance, Georgia, North Carolina, and many other states have laws that make it more straightforward to file Allstate diminished value claims.
States like North Dakota and Michigan have less favorable laws regarding diminished value. If you’re unsure about your state’s rules, contact DVCHECK for a free claim review.
How to File an Allstate Diminished Value Claim
Filing an insurance claim may seem daunting, but with the right resources, it’s manageable. Completing the steps to file an Allstate diminished value claim is straightforward. Here’s what you need to do.
- Determine Your Eligibility: If you’re not eligible to claim diminished value, you could waste time only to receive a denial. Besides your vehicle’s eligibility, you must also understand the claims process for diminished value claims.
- Gather Your Supporting Documentation: This information may include photos of your vehicle, repair estimates, market comps, and a professional appraisal.
- Contact Your Allstate Adjuster: Reaching out to your Allstate adjuster lets them know your intent to file a diminished value claim and begins the review process.
- Negotiating a Fair Offer: Allstate is generally one of the better companies when it comes to paying diminished value claims and will typically make an offer after you submit a professional appraisal. If the offer is low, negotiate with Allstate until they’re no longer willing to increase it.
- Consider Legal Action: If you and Allstate can’t reach an agreement on the proper diminished value calculation and claim payout, escalating the matter to court could be an option.
If you’re unsure who to submit your claim to, you can visit Allstate’s website or contact them by phone at 800-726-6033.
Strengthen Your Allstate Diminished Value Claim With DVCHECK
Seeking diminished value and proving it can be complex. Take the guesswork out of claiming the compensation you deserve with help from DVCHECK. We have over 25 years of insurance claims experience and providing diminished value appraisals.
You can count on our expertise for guidance through each step of your diminished value claim with Allstate. Get started with a free diminished value estimate and claim review today.
