Diminished Value Claims 101: A Guide Of Faqs After An Accident

When your car has been in an accident, even if it has been properly repaired, the overall value of the car goes down. Even though the insurance company pays to get your car fixed, you are still losing money on the overall value of your vehicle if you do not file a diminished value claim. If you live in a state that allows you to file this type of claim, you are going to want to know a few things about the whole process. Here is a look at some of the most common questions and answers about this type of claim.

When can you file a diminished value claim?

If your car has been damaged because of an accident and it was not your fault, this claim can be filed because the value of your vehicle will change after the accident and after the repairs have been made. You will be filing a claim against the insurer of the other driver since they were responsible for the accident. Therefore, it is best to file this claim at the same time that you file the accident claim to get the money to repair the vehicle. 

How long do you have to file this kind of claim?

Most states have a statute of limitations on these kinds of claims, which means you will only have so long after the accident to file a claim or it will be denied. If you do not find out that the vehicle's overall value has been severely diminished until after the repairs to your car have been made, you should still be able to file a claim. It is just better to file in the days after the accident while all of the information is still fresh in your mind and evidence is easier to obtain.

How is the diminished value determined?

The insurance company will use a few different factors to determine how much the car's value has diminished and how much you are owed. They will look at the car's overall current market value, the mileage of the vehicle, and the severity of the accident to figure out how much the vehicle would have been worth before the accident and how much the car's value has been compromised afterwards. Keep in mind, if you feel the offer for the claim is unreasonable, you can try to negotiate a better price. 

Contact a company like Chicago Auto Appraisers for more information.