Car accidents can cause several types of damage and harm. Accident victims may sustain injuries resulting in medical bills and other economic damages. Their injuries may result in non-economic damages, including pain and suffering.
In addition to the physical and emotional damages caused by injuries, a car accident can result in property damage. Depending on the severity of the collision, a vehicle could require tens of thousands of dollars in repairs. Some vehicles may not be worth repairing.
If you are dealing with a car insurance company for a property claim, you need to understand your rights for diminished value claims after a car accident. Insurance adjusters will not tell you about diminished value claims, and the insurance company may discourage you from filing a claim for diminished value.
However, you could be entitled to a significant amount for the loss of value you experienced because your car was wrecked.
Totaled Loss vs. Repairs After a Car Accident
If another party is responsible for causing your car accident in Texas, you can file a claim against the at-fault party’s car insurance coverage. The insurance company evaluates the damage to your vehicle. If the value to repair your vehicle exceeds or is close to exceeding the vehicle’s value, the insurance company will likely total the car.
Totaling a vehicle means that the repairs cost more than the car’s value, or making the repairs would not result in a safe vehicle. Therefore, the vehicle is a total loss. The insurance company should pay you the fair market value for your vehicle based on its condition before the accident.
If the car is not totaled, the insurance company pays to repair the vehicle. The repairs should return the vehicle to its condition before the accident.
What Is a Diminished Value Claim in Dallas, TX?
Diminished value arises when a vehicle is repaired after an accident. Even though the vehicle may look like new, it was still involved in a car accident. By law, you must disclose a vehicle’s accident history when you sell it. Usually, car dealers and private buyers are unwilling to pay the full market price for a vehicle that has been involved in a car accident.
Therefore, the diminished value of your vehicle is the difference between the value of your vehicle before the accident and the value of your vehicle after the repairs. For instance, suppose the fair market value of your vehicle before the car crash was $22,000.
However, after checking with several car dealers and private buyers, the most anyone will pay for your vehicle is $17,000, given its accident history. The diminished value would be $5,000 ($22,000 – $17,000).
Three Types of Diminished Value Claims
When we discuss diminished value claims, your claim may fall under one of these three categories:
- Immediate Diminished Value: Your car is worth less because it has been in an accident. This value is “as is” without repairs. It is unlikely you will deal with this claim because the insurance company should make repairs.
- Inherent Diminished Value: Your car has been repaired, but is worth less because it was in an accident on the title history.
- Repair-Related Diminished Value: The value has decreased because of repair errors or mistakes. For instance, the paint color does not match, or old parts were used instead of new factory parts.
Proving diminished value can be challenging. Evidence that can strengthen your claim includes proof of your vehicle’s value before the accident, such as a recent appraisal, recent photographs, maintenance schedules, receipts for additions and special equipment, and more.
You should also obtain evidence of the value after repairs. Obtain estimates from several dealers. Ensure you provide them with the details of the repairs to include in their estimates. Ask the dealer to specifically list why the value has decreased, such as whether the vehicle sustained severe structural damage or minor structural damage.
Even with solid evidence proving your claim, an insurance company may be reluctant to pay you a fair amount for your diminished value claim.
Steps for Recovering Compensation for a Diminished Value in Texas
A diminished value claim is part of your property damage claim with the insurance company. Therefore, you do not want to sign any forms that release a property damage claim until you resolve the diminished value claim. Notifying the insurance company in writing that you intend to file a diminished value claim helps protect your rights.
Gather evidence proving your vehicle’s decreased value. As discussed above, you may need to obtain written appraisals from dealers or other experts to calculate the loss in value caused by the accident. The more evidence you have proving the diminished value, the better your chance of obtaining a fair settlement.
If the insurance company denies your claim or refuses to negotiate a fair settlement, contact a car accident lawyer to discuss your legal options for pursuing the claim.
Schedule a Free Consultation With a Car Accident Lawyer To Learn More
Contact a personal injury lawyer from Benton Accident & Injury Lawyers at (214) 556-8321 for a free case evaluation if you have questions about a car accident claim. Understanding your legal rights and options is essential for protecting your best interests when dealing with an insurance company after a car accident.