How to File a Diminished Value Claim
An accident can wreck your vehicle’s value, but it doesn’t have to come out of your pocket!
Accidents and Vehicle Damage Diminish Your Automobile’s Value
The at-fault party’s insurance company may owe you a check for the reduced value of your vehicle. In most states, you can file a diminished value claim with the at-fault driver’s insurance company. Filing a diminished value claim intends to compensate you for your automobile’s loss in value following an accident.
Less than 7 years old
Has under 100,000 miles on its odometer
Does not have a previous accident history. If it does, the previous damage must be minor.
You own your automobile. Leased vehicles won’t qualify. However, financing or making loan payments is acceptable.
Another driver was at fault for the accident.
Helping Customers Nationwide Recover Diminished Value
Why hire DVCHECK for help with how to file a diminished value claim?
We’ve helped people recover millions of dollars over the years.
Expert guidance from the beginning to the end of your claims process
Top-rated appraisal company in the country with hundreds of 5-star reviews and an A+ BBB Rating
Experienced, certified auto appraisers that provide personalized attention to each claim
A risk-free experience with our money-back guarantee to ensure you’ll recover more than the cost of the appraisal report fee
Frequently Asked Questions About Diminished Value
What Is a Diminished Value Claim?
*This type of claim exists to let vehicle owners seek potential compensation after their automobile sustains damage they weren’t responsible for.
*Georgia does allow drivers to claim diminished value after at-fault accidents and not-at-fault accidents. Georgia law requires that insurance companies assess diminished value on all auto claims.
How Do I Prove My Diminished Value Claim?
If you’ve been in a car accident, you must prove your claim.
The best way to prove your claim is by getting a diminished value appraisal from a licensed and experienced independent appraiser.
An independent appraiser must be:
- Disinterested in your claim’s outcome
- Unbiased
- Not involved in the sale of your vehicle
Proving diminished value takes the skills of a competent auto appraiser. Unfortunately, not all diminished value appraisal reports are equally created. Many low-quality appraisals exist from unqualified appraisers and unsupported opinions. Automated software also yields poor results.
Insurance companies want a high-quality independent appraisal from an industry expert with relevant qualifications and experience. They want appraisals that contain market data and facts.
That’s what you’ll get with a DVCHECK appraisal. The insurance company sees a data-driven report created by a licensed appraiser. Our appraisals contain real market data and facts that support your diminished value claim.
We’ll guide you through the claim process, help you overcome insurance company defenses, and help you build up your documentation.
Pick the wrong appraisal company or submit the wrong documentation and you could be in for a long, drawn-out process.
How Long Does It Take to Settle a Diminished Value Claim?
Most claims will take anywhere from two to six weeks to settle. Some depreciation value claims settle even quicker.
The more you follow up with the insurance company, the quicker the process will go.
If your claim is dragging on and the insurance company isn’t being responsive, try filing a complaint with your state’s Department of Insurance.
Every state has an insurance department that handles state-wide complaints and regulates the insurance industry.
This department helps hold the appropriate insurance provider responsible while ensuring this company responds to your claim.
How Is Diminished Value Calculated?
No state laws or insurance regulations specify how to calculate diminished value. Laws define what you’re legally entitled to collect. However, there’s no guidance about diminished value.
Case law in most states defines diminished value in two ways:
- Immediate Diminished Value: The difference between a vehicle’s market value immediately before and immediately after the collision (before repairs).
- Inherent Diminished Value: The difference between a vehicle’s market value before the harm and its lesser value after the repairs have been made. You’ll also be able to recover the cost of your vehicle’s repairs.
These calculations require extensive knowledge of automobiles, insurance, and the claims process. Contact DVCHECK for help from a team of experienced and certified vehicle appraisers.
How to File a Diminished Value Claim?
Typically, if the accident wasn’t your fault, you would file a claim with the at-fault driver’s insurance company — it’s covered under their property damage liability.
If the accident wasn't your fault, you can file a claim in most states. You’ll need to submit your documentation and demand letter to the at-fault driver's insurance company.
You can do this via mail or email. The demand letter should specify the exact amount of diminished value that you’re claiming and set a time frame for a response.
You may be wondering when to file a diminished value claim. The ideal time is right after you get your vehicle repaired.
Every state has a statute of limitations (amount of time you have to make the claim). In most states, you have at least two years to file a claim, but you don’t want to wait until the last minute after learning how to file a diminished value claim.
What if Your Diminished Value Claim Gets Denied or Underpaid?
If your claim is denied or if you receive a low offer, you’ll want to negotiate.
When you receive a low offer, you should make a counteroffer. Sometimes by coming down on your initial demand, the insurance company will increase its offer as a gesture of good faith.
Haggle and negotiate until they get firm with their offer.
Diminished Value Claims by State
Legal proceedings vary by state. Select your state below to learn how to file a diminished value claim there.
