Question: Is A Diminished Value Claim Worth It?

What states will pay diminished value claims?

The following states allow drivers to recover diminished value from the at-fault party’s insurance company:Arizona.Colorado.Florida.Georgia.Illinois.Indiana.Iowa.Kansas.More items…•.

How do I calculate the diminished value of my car after an accident?

Some law firms multiply the Blue Book value by . 33, and subtract that amount to find the estimated post-accident value. Step 3: Subtract the value of your car post-accident from the value of your car pre-accident. This will give you a good estimation of the actual diminished value of your vehicle.

Does a repaired car lose value?

But even fully repaired, the depreciation value of a car after an accident is still present. Even with all new parts and no sign of damage anywhere, you can’t command the same resale value. That’s because there’s now accident history on the vehicle history report.

How much does an accident affect car value?

Every year the value will depreciate about 10% to 15% no matter what. By the three year to five year mark, your car may only be worth half of its initial value. An accident will increase that depreciation rate by 10% to 25% annually depending on how bad it was in the first place.

How much diminished value should I get?

If you’re looking for a simple way to calculate diminished value to get a basic idea of what your loss may be, first determine the book value for your car. If the damage is moderate to severe, figure roughly 15% to 25% of the book value and if the damages are less than moderate, figure 10% to 15% of the book value.

Do insurance companies compensate for diminished value?

According to the Insurance Information Institute, diminished value laws in all states except Michigan require the at-fault drivers insurer to compensate you for the lost value of your vehicle. Typically, the at-fault driver’s property damage liability insurance covers a diminished value claim.

Can you sue for diminished value?

Can I sue in small claims court for the difference? Answer: Insurance companies look at car accidents from a financial perspective. … However, if you feel as if your car has lost some of its market or resale value due to the accident, then you can attempt to claim (or sue) for the diminished value of your car.

Does Geico pay diminished value?

In a state like Florida, if GEICO insures your car, it never has to pay you for your diminished value claim. On the other hand, if GEICO insures the at fault car, it may have to pay you for your diminished value claim. You need to give GEICO proof that your car has lost value after the accident.

Does paint transfer determine fault?

Rust Patterns and Paint Transfer to Other Vehicle Rust patterns reveal whether an accident actually occurred. During a traffic accident, paint transfers between vehicles and chips off. Police can examine these patterns to help determine whether an accident occurred, how it occurred, and who is likely at fault.

Do all accidents get reported to Carfax?

Yes. If an accident has been reported to CARFAX it will be included in the CARFAX Vehicle History Report. … However, we do not have all accidents as many have never been reported, or may only have been reported to a source to which CARFAX does not have access.

Can you negotiate diminished value?

You will have to ask the other party’s insurance company to be compensated for the diminished value. You may have to ask more than once. It’s a negotiation, Hixenbaugh says. Some insurers may maintain that there is no such thing as diminished value, or offer a token amount calculated by an industry formula.