If your car has been damaged in an accident and was not your fault, you may be entitled to file a diminished value claim. However, diminished value claims are not covered by collision or comprehensive insurance policies. To make a successful claim, it is important to understand what is covered and how it works. In addition, it is a good idea to familiarize yourself with the process and the laws in your state. This will help you understand if a diminished value claim is right for your situation and how to calculate your loss.
How to Calculate Diminished Value
If you are involved in a vehicle accident that is not your fault, you can file a diminished value claim with the at-fault driver’s insurance company under their property damage coverage. To determine the amount of a diminished value claim, insurers will use a formula called 17c, which was established in a Georgia case. The basic formula is to take the pre-crash market value of your car and then multiply it by 10%. Then, you will add in the damages that were sustained to your vehicle.
In most cases, you can expect to receive around $3,000 or more for a diminished value claim. The key to a successful claim is to follow the process and provide as much documentation as possible. Documentation that is clear, concise, and well-organized will increase your chances of getting the maximum recovery available. If you have any questions about the process, a car accident attorney can assist you.
Some insurance companies may deny a diminished value claim or dispute the amount of a claim, but you should not give up. It is a good idea to contact your local department of insurance and ask for their help. This is a government agency that regulates the insurance industry and can hold the insurance company accountable for any violations. If the insurance company still does not respond, you can always consider filing a complaint with your state’s consumer protection agency.
It is also important to remember that a diminished value claim is only available against the at-fault driver’s insurance. It is not covered by your own policy. It is not uncommon for a car accident victim to hire an attorney to handle their diminished value claim, especially if they were at fault during the accident.
At Tadziev Law Firm, our Queens car accident lawyers can evaluate your diminished value claim and assist you in pursuing it against the at-fault party’s insurance company. We offer a free consultation and can answer your questions about the car accident and what options you have for compensation. Contact us today to schedule an appointment. You can reach us online or call us at 212-767-9990. We look forward to hearing from you.