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Everything to Know About Diminished Value Accident Claims in Texas

Insurance adjuster inspecting damage to vehicle.

Even after repairs, your car’s value can plummet after an accident. Diminished value is a concept that can significantly affect your financial recovery.

Why Don’t All Insurers Automatically Cover the Diminished Value?

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. In such cases, the at-fault driver’s insurance must pay you the reduced value because of the accident.

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.

Is Bringing a Diminished Value Claim Worth It?

An experienced accident lawyer in Houston can help you recover your losses for injuries. Finding an attorney who handles property damage cases is often difficult. 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.

Learn about the usual pitfalls, such as insurance adjusters undervaluing your claim or outright denying liability. The evidence needed to be gathered, valuation experts could be consulted, and negotiations would be made to receive fair compensation. In Texas, laws can be complex and vary by case specifics.

How Much Is the Average Diminished Value Claim Worth?

The value of a diminished value claim can vary dramatically from car to car, depending on the car’s make, model, age, mileage, and condition before the accident. The newer and higher-end the vehicle, the greater the potential loss in value if it is 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.

How Do I Make a Diminished Value Claim?

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 you have a better chance of getting fair compensation.

How Do I Go About Finding My Car’s Current and Previous Market Value?

To determine your car’s diminished value, you must determine its worth before and after the accident and the repairs. Kelley Blue Book or Edmunds can help you estimate the car’s market value, depending on its make, model, and mileage.

You can also check CARFAX and run a vehicle history report to see how the crash affected your vehicle’s history.

One option is to visit the dealership from which you originally purchased the car and obtain a written opinion on the impact of the car’s wreck on its resale value.

You can also hire a licensed appraiser who focuses 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 from a car accident, hopefully, the material in this article provided you with helpful information.

Contact the Houston personal injury law firm of Baumgartner Law Firm at (281) 587-1111.
Baumgartner Law Firm
 
6711 Cypress Creek Pkwy 
Houston, TX, 77069

Post under: Accidents in the News
Houston personal injury lawyers
Greg Baumgartner, Founder of Baumgartner Law Firm

Since establishing Baumgartner Law Firm in 1985, Greg Baumgartner has built a reputation as one of Houston’s leading personal injury attorneys, dedicated to representing severely injured victims and families who have lost loved ones due to negligence.

Greg holds two law degrees, a distinction earned by less than 1% of all attorneys, demonstrating his exceptional legal expertise. He is also a prestigious Trial Lawyers College graduate, further enhancing his skills in trial advocacy and litigation.

His relentless commitment to legal excellence and client advocacy has earned him recognition from prestigious organizations, including Super Lawyers, the Top 100 Trial Lawyers, and many others.

With decades of experience, Greg has consistently received top peer reviews. He holds a preeminent rating, a testament to his unwavering dedication to securing justice and maximum compensation for his clients.


Baumgartner Law Firm 6711 Cypress Creek Pkwy, Houston, TX, 77069 Call Us at: (281) 587-1111

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