Even after repairs, your car’s value can plummet after an accident. Diminished value is a concept that can significantly affect your financial recovery.
It’s no secret that insurance companies prefer to make money over being fair. Policies generally cover the cost of repairs but not the car’s post-repair market value. A vehicle’s history of being in an accident, even with flawless repairs, reduces its desirability to buyers. Insurers say diminished value is unnecessary because the car is ‘restored to function.’
Nevertheless, diminished value is recognized under Texas law as a valid loss, particularly in third-party cases. The at-fault driver’s insurance must pay you the reduced value in such cases.
However, such claim processing isn’t always smooth and often requires persistence and a good understanding of the law. Insurers do so because many people do not know or cannot afford to pursue these claims.
An experienced accident lawyer in Houston can help you recover your losses. And if your car was new or in great shape before the accident, it’s often worth pursuing a diminished value claim. These claims are financially justifiable because vehicles with greater market values tend to sustain more significant losses in resale value after repairs.
An attorney can help you deal with the usual pitfalls — such as insurance adjusters undervaluing your claim or outright denying liability. The evidence will be gathered, valuation experts will be consulted, and negotiations will be made to receive fair compensation. In Texas, laws can be complex and vary by case specifics, and without legal guidance, you may miss out on the full recovery you deserve.
The value of a diminished value claim can vary dramatically from car to car, depending on the make, model, age, mileage, and condition of your car before the accident. The newer and higher-end the vehicle is, the greater the potential loss in value if the vehicle gets stolen.
A luxury vehicle with $10,000 in damages may lose up to $15,000 to $20,000 in resale value. But an older, cheaper car could lose just a few thousand dollars. Texas doesn’t have a formula for calculating diminished value, so insurers often use appraisals from independent experts. Getting your appraisal is a vital step in proving your claim’s value.
You start by telling the at-fault driver’s insurance company that you will file a claim. You must provide proof, repair estimates, and documentation of your car’s reduced value to prove the accident.
Often, you need to hire a professional appraiser to determine your vehicle’s pre- and post-accident market value. This appraisal proves to be solid evidence against low offers from the insurer. By working with a seasoned attorney, you ensure your claim is properly documented and presented and have a better chance of getting fair compensation.
To figure out your car’s diminished value, you’re going to need to figure out what it was worth before the accident and what it was worth after the repairs. Depending on the car’s make, model, and mileage, Kelley Blue Book or Edmunds can help you estimate the car’s market value.
You can also, check CARFAX and run a vehicle history report to see the crashes impact on your vehicle’s history.
One option is to go to the dealership you bought from originally and get a written opinion of the impact of the car being wrecked on the resale value.
Also, you can hire a licensed appraiser focusing on diminished value assessments. These experts consider accident reports, repair quality, and current market conditions to calculate an accurate valuation, which is invaluable when negotiating with the insurance company.
If you’ve been the victim of diminished value and suffered financial loss, the help of an experienced Houston car accident lawyer can be the difference. Don’t let the insurers undervalue your claim.
Baumgartner Law Firm
6711 Cypress Creek Pkwy
Houston, TX, 77069
(281) 587-1111
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