When it comes to filing a claim for diminished value, the laws of most states are not clear. Generally, you cannot request a decrease in value with your own coverage if the accident was your fault. However, if someone else caused the accident, you may be eligible to receive thousands of dollars in reduced value for your vehicle. In order to file a diminished value insurance claim with the at-fault driver's insurer, you must first determine the difference between the fair market value of your car before and after the accident.
This is known as the decline in value. It is important to note that just because a state allows for a low value claim does not mean that insurers are required to pay it. When writing a diminished value letter, you should include information about the event that triggered insurance coverage and how it decreased the value of the item, even if it was repaired. You should also provide evidence from an independent source that establishes your loss.
Insurance companies may use various tactics to dispute your claim, such as providing evidence that the loss is lower than what you requested or hiring their own independent appraiser. 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. It is important to remember that if you are the at-fault driver, your insurance company is unlikely to pay your diminished value claim. Therefore, it is 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.
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