What Next?

When to File a Diminished Claim

If you are involved in a crash where the other party is at fault, it may be best to file a diminished value claim early so you can recover the difference in your vehicle’s value.

It is generally best to file for a diminished claim with the at-fault party’s insurance company as soon as possible, preferably in the days after the accident occurs, so that all the necessary data is readily available.

It is often easier to present your case (with supporting documentation) when you file quickly. Also, the value of your vehicle could decrease the longer you wait to file a claim.

Filing a Claim For Diminished Value

Filing a diminished value claim can be more involved than filing a claim for other issues because the burden of proving the car’s diminished value is generally your responsibility. Further, if you are at fault in the crash, your diminished value claim will likely be denied, unless you have a policy provision which allows for the loss claim.

If the other driver is at fault, then we can help you make that claim. To make a claim we document the vehicle’s market value at the time of the loss. We document the damage and repairs. We then document the value of the vehicle after the loss and after the repairs. It is important to note that each state have different regulations which affect how diminished value claims are handled. Since every state has different statutes regarding insurance, knowing the laws is crucial to receiving the most you can for a diminished value claim.

Considerations When Filing a Diminished Value Claim

Filing a diminished value claim is not the right option for everyone. You may or may not receive a payout when filing a diminished value claim. A few things to consider are:

-Your vehicle’s value before the crash: If you drive an older car that has a lot of mileage or structural damages, you may not receive a payout for diminished value.

-Whether you were at fault: If you caused the crash, then your insurance company most likely will not pay a diminished value claim.

-If you are involved in a crash with an uninsured driver: If you have uninsured motorist coverage with your insurer, you should file a diminished value claim.

-What state you live in: Every state has different regulations around diminished value claims. Since each state goes by different statutes for diminished value payouts, it is important to know the regulations in each state.