As we’ve explained before, diminished value is the difference in the value of your car before and after a car accident. If your car is damaged in a collision, knowing if your insurance will pay for the loss of your car’s value or if you’ll be seeking damages from the other driver who was at fault is important. Another important question you should be asking, “Should I accept the diminished value quoted by the insurance company for my vehicle; is that the best quote?”
To be honest most insurance companies will always low-ball the consumer when it comes to diminished value compensation. If you’re the driver at fault and there was no other driver involved in an accident, most likely you’re out of luck in recovering diminished value (check your policy or speak with insurance company.) If you’re in a car accident involving another driver at fault, their insurance company may offer you a reimbursement, but more often than not it will be drastically lower than the difference of fair market value you can recover on your damaged vehicle.
State Court Rulings
In most states, the collision section of the standard auto insurance policy language excludes coverage for a vehicle’s diminished value, with many states’ courts affirming the exclusion. However, there have been some landmark court decisions. In Georgia for example, a case recovered damages for diminished value where the at-fault driver was uninsured. In another case, the Georgia Supreme Court ruled diminished value applies to property damage in addition to repair costs. Check with your state to know what laws are in place that may apply to you.
How Can I Be Sure I’m Getting the Best Diminished Value Reimbursement for My Car?
Compare, compare, compare! Just like getting multiple quotes when buying car insurance coverage, you don’t want to settle on the first diminished value quote, especially from an insurance company. When a car is damaged in a collision, the insurance company of the at-fault driver may quickly offer to pay you on the loss of your car’s value, but they’re looking to save money and pay you as little as possible. You need to get a quote from CrashCalculator™ where you will get your true diminished value reimbursement amount and help filing your claim. To receive the correct number of the fair market value difference before versus after an accident, start by entering a little information about your car and then give us a call. We’re ready to help you.