Whether you can file a claim for diminishing value in your state, especially a claim filed by the first party, is not easy to determine, since most states have no applicable law in this regard. The same applies to cars that are flooded but are not completely exhausted; generally, you can't request a decrease in value with your own coverage. If the accident was your fault, don't expect to be able to claim the decrease in value from your own collision coverage. You may be eligible to charge thousands of dollars in reduced value for your vehicle.
Then, if the accident reduced the value of your car, you could file a decreased value insurance claim with the at-fault driver's insurer. Even so, “just because state law allows for a low value claim doesn't mean that insurers are required to pay it,” Gusner says. Now, if someone hits your car, many states allow low-value claims from the at-fault party's insurance company. Think of the decline in value as the difference between the fair market value of the vehicle before the accident and after the accident.
You'll benefit more from a higher decrease in value, so it's wise to know how the insurer will calculate your number and how it compares to your own estimate of the value of the car if you were to sell it after a collision. You can complete this letter if the value of the item decreased after the event that triggered insurance coverage, even if it was repaired. It's also important to note that if you're the at-fault driver, your insurance company is unlikely to pay your diminished value claim. A reduced value claim letter is a formal document prepared by an insured person or company and sent to their insurance provider with the intention of reimbursing the policyholder for the difference in the value of the insured item.
To begin the diminished value claim process, you must establish your loss from an independent source. Low value insurance claims allow car owners to recover part of the difference between the value of a car before the accident and its value after repairs. To do this, many tactics are used, such as trying to refute the documentation, providing other evidence that the loss is much lower than the one requested, hiring their own independent appraiser and, in some cases, they may even deny your claim stating that they do not owe the decrease in value because the vehicle was properly repaired.