Car accidents and subsequent repairs can cause your vehicle to lose its value. The decreased value of your vehicle can affect your ability to sell or trade it in, furthering your losses. When this happens, you may be eligible to file a diminished value claim in Florida if the other driver was at fault and you can meet certain criteria.
What Constitutes a Diminished Value Claim
Vehicles normally depreciate over time, but an accident speeds up this process and causes a steep decline in its value. This means that if you sell it or trade it in you would get less for it than you normally would, or receive nothing at all. However, diminished value claims allow you to claim the lost value of the car among your damages and recover its value in your settlement.
When it comes to diminished value, there are three types. These include:
Inherent diminished value: Loss of value due to the vehicle’s accident history
Immediate diminished value: Loss of value from the accident that just occurred before any repairs are made.
Repair-related diminished value: Loss of value due to flawed repairs
Each of these types of diminished value will be taken into account during the claim process.
Eligibility Criteria for a Filing a Diminished Value Claim
To be eligible to file a diminished value claim, you must meet certain requirements. First, another driver must have been at fault for the accident and the subsequent damages. Repairs must be completed by a professional mechanic and the vehicle cannot be totaled. You must also be able to provide evidence of the vehicle’s diminished value to the other driver’s insurance company.
Filing Your Diminished Value Claim in Florida
If you are eligible to file a diminished value claim in Florida, you will need to follow certain steps to make sure your claim is processed properly. Once all repairs have been made to your vehicle, you must get a vehicle appraisal to determine its value. You will need to provide evidence of the condition of the vehicle prior to the accident, the cost of repairs, and how much it is worth now. The value difference will represent the loss you sustained. This stage may include consulting with vehicle appraisal experts and filling out online plug-and-play forms.
Once all evidence has been gathered, you will need to submit the information as soon as possible along with your request for damages to the insurance company for processing. An experienced St. Petersburg auto accident attorney can communicate on your behalf and negotiate the settlement for your diminished value claim.
What to Expect During the Diminished Value Claim Process
When filing a diminished value claim, you should be aware of what to expect during the process so you can be prepared and protected. The more evidence you can collect about your car’s value the better. It is not uncommon for insurance companies to contest the value of your vehicle in order to avoid paying you. Legal representation and qualified appraisers and mechanics can reduce this risk, and make sure you receive a fair settlement for the diminished value of your vehicle.
