Each insurance company has its own unique processes and procedures for handling diminished value claims.
Filing a State Farm depreciation claim can be straightforward, but understanding their process will give you the best chance of a smooth experience and a successful outcome.
This post teaches you how to proceed with a diminished value claim involving State Farm.
A Quick Overview of Diminished Value
Diminished value refers to the decrease in an automobile’s market value after it has been damaged in an accident and subsequently repaired. Even after fully repairing the damage, most buyers will perceive this automobile to be worth less than the same vehicle without an accident history.
Does State Farm Pay Diminished Value?
State Farm’s standard position is that a vehicle involved in an accident can be fully restored to its pre-loss condition by quality repairers without incurring any diminished value. This stance puts the burden of proof on the claimant. In this case, that’s you. To deviate from its position, State Farm typically requires you to provide “proof” before paying a diminished value claim.
Proof usually means submitting a professionally prepared diminished value appraisal to support your State Farm diminished value claim.
Once you have submitted your appraisal for a diminished value claim to State Farm, it opens the door to the claims process, and State Farm will typically extend some sort of settlement offer. After receiving their initial offer, it’s best to make a counteroffer and keep negotiating until they present a final, firm offer.
The more documentation and evidence you provide to State Farm during negotiations, the greater your chances of securing a higher settlement offer.
Georgia Diminished Value Claims Involving State Farm
State Farm handles diminished value claims in Georgia differently from those in other states.
For Georgia claims, they typically use the 17c formula and generally won’t require you to get your own appraisal. However, the 17c formula is severely flawed and will grossly undervalue your State Farm depreciation claim.
If you want a reasonable settlement, you’ll need to present documentation supporting your claim.
Most insurance policies in Georgia include an appraisal clause that allows your appraiser to negotiate with the insurer’s designated independent appraiser, often leading to a fair diminished value settlement.
Unfortunately, State Farm has removed the appraisal clause from their Georgia insurance policies. The appraisal clause is a valuable and effective tool that helps protect consumers from being lowballed by insurance companies.
Without an appraisal clause for your State Farm diminished value claim, small claims court becomes the only viable option if you're dissatisfied with their final offer. If that happens, prepare yourself by gathering compelling evidence, such as a DVCHECK appraisal, to help increase your chances of a successful outcome.
How to File a Diminished Value Claim with State Farm
Your first step should be to obtain a diminished value appraisal from a qualified auto appraiser who specializes in these claims. This will help determine the extent of the depreciation in your vehicle’s value following the damage and repairs. After you’ve secured a high-quality certified appraisal, it’s time to submit your diminished value claim to State Farm.
There are several ways to file a State Farm diminished value claim. You can email your appraisal to statefarmclaims@statefarm.com. Remember to include your State Farm claim number in the subject line.
You can also call State Farm’s claims phone number at 800-SF-Claim (800-732-5246) or file a claim on their website.
What Happens After You File?
After submitting your State Farm diminished value claim, an adjuster will review the evidence you submitted. Next, you should hear back from State Farm after a week or two. At this point, you may receive a settlement offer lower than what your appraisal suggests. That’s when negotiating becomes essential.
Tips to counter initial lowball offers:
- Be Persistent and Professional: It’s understandably frustrating to receive an offer lower than expected. However, being confrontational will impede your progress and won’t help your cause. Engage in polite, yet firm communication.
- Understand their Valuation Method: After looking over their offer, make sure you understand how the insurance company calculated the diminished value, and request a breakdown. Note specific areas where their calculations and your appraisal don’t match up.
- Present More Documentation: Gather additional market comparisons using similar vehicles to show that your vehicle’s value has decreased more than what the insurance company has offered.
If you are ready to proceed with a State Farm diminished value claim, reach out to DVCHECK for a free estimate. We’ve provided diminished value and total loss appraisals for over 25 years. Don’t leave money on the table. We can help. Take the first step toward potentially maximizing your diminished value-related compensation today.
