Diminished value refers to a vehicle’s worth decreasing due to damage caused by an accident. It is important to understand that when a vehicle becomes damaged, its value decreases, even when it is professionally repaired and functions the same as it did before a crash. This reduced value becomes particularly problematic when a person later wishes to sell their vehicle that sustained damage in the past.
In some situations, individuals can recover that decrease in value by filing a diminished value claim. Unfortunately, receiving this compensation can be challenging. Not every driver is eligible for it, and dealing with insurance companies can be complex.
QUALIFICATIONS FOR A DIMINISHED VALUE CLAIM
To qualify for a diminished value claim, the vehicle in question typically must have a market value of at least $7,000. The vehicle also must not be more than ten years old. When a vehicle has a salvage or rebuilt title, a lot of mileage, or has been in multiple accidents that caused significant damage, owners may not disqualify to make a diminished value claim. Additionally, if an owner never declared their car as a total loss, this also disqualifies drivers from making a claim for the decreased value to their vehicle.
Although there are certain eligibility requirements for drivers, insurance companies also must follow specific rules for these claims. Coverage providers may only give money to drivers that qualify for these claims, and they are prohibited from increasing premiums or canceling the policy if their driver makes a claim.
UNDERSTANDING THE DIMINISHED WORTH OF A VEHICLE
To understand the diminished worth of a vehicle, drivers must first know the regular market value of their car. The vehicle’s value in its current condition and after it has sustained damage must then be determined.
Once an individual discover both of these values, the difference between the regular market value and the vehicle’s current worth help drivers understand what the diminished value of their property is. To qualify for a claim, the diminished value usually must be above $500. Otherwise, it is considered too insignificant of a loss.
HOW A CAR ACCIDENT ATTORNEY COULD HELP
Even though insurance companies are required by law to pay out on diminished value claims when individuals qualify for them, they are often reluctant to do this. They may claim that drivers do not qualify, or disagree with the amount a driver is claiming.
These are the same tactics insurance companies use when paying out on any accident claim. They are illegal, and when coverage providers attempt to use them, all motorists should understand that they have rights.
A car accident attorney in Georgia could help someone who was involved in an claim the diminished value that they deserve. If your vehicle has sustained damage and you would like to file a diminished value claim, it is important that you protect your rights. An experienced attorney understands how to hold insurance companies accountable for paying the compensation you deserve so you can secure it as quickly as possible.