When you've been in a car accident, you may be entitled to a diminished value claim. This type of claim allows you to recover the difference between the value of your car before and after the accident. Generally, the best candidates for recovering diminished value are vehicles that are 7 years old or newer. It can be difficult to determine whether you can file a claim for diminished value in your state, especially if it's a first-party claim.
Georgia is an exception, as you can file a reduced value claim in both at-fault and no-fault accidents. If the other driver is at fault, you should contact your auto insurer to discuss your reduced value claim process. You can also file a reduced value claim with your own insurance company if the at-fault driver is an uninsured motorist or if you are the victim of a hit and run. Diminished value is the difference between the market value of a vehicle before damage and its lowest value after repairs have been made.
To calculate this, the value adjusted in step three is multiplied by one of these mileage multipliers. This is called diminished value, which is the difference in the market value of your car before and after the accident. It's important to understand your rights with a reduced value claim to ensure that you receive the amount for your car that you are entitled to. While your application for diminished value could be successful, you could end up spending a lot of time recovering a small amount of money.
The following states have court cases with favorable outcomes for those seeking compensation for a decrease in value (in the case of first-party claims); therefore, in these states, you are more likely to have your claim at least considered: Georgia, New York, and other states.Most insurance companies in the United States use a calculation called the diminished value formula of 17c to determine the new value of a vehicle after an accident. This formula provides a standard method for calculating the value of your diminished value claim.