Here’s the lowdown on claiming a diminished value claim from an insurance company. That claim might never see the light of day. And don’t expect these insurers to be all congenial and cooperative when you present your claims; they will do whatever it takes to wrangle their way out of it.
It’s pretty much in
the same vein how unscrupulous HMOs with devious medical directors would operate
when trying to deny you your health insurance benefits. You are entitled to these
and at the same time you’re not. If you come unprepared to substantiate your
claims, then be prepared to hear all sorts of excuses until you’ve had enough
and you are forced to just drop your case. Here then are some helpful pointers
on how you can make a diminished value
claim to help you recover a significant fraction of your losses.
Before going that
route, make an honest if not impartial assessment of your vehicle. Is it really
worth all that trouble pursuing a diminished
value claim? Consider this as an essential pre-step before you proceed to
take on the next few steps. If your vehicle has been around and seen the worst
of times, then maybe it’s better to just stand down. If lawyers have to be
dragged in the process, your eventual legal fees could far exceed the value of
your seasoned yet ailing vehicle. It’s best to cut your losses immediately.
However, if you’re
talking about a brand new luxury sedan that’s just rolled off the showroom but
had the misfortune of undergoing unforeseen circumstances, then this would be
worth taking the fight to the insurer. But before that, know to whom you’re
taking the fight. In this regard, it’s important to make the distinction
between first-party claim and third-party claim.
Research about your
state’s laws regarding how they measure diminished value and their stance on
first-party claims versus third-party claims. First party is when you ask your
insurance company directly for diminished
value claim. Third party is when you ask the other party’s insurance
company to shoulder the claim. Naturally, third-party claims only work out if
you’re the victim of the other party’s lapse in road judgment.
However, for
first-party claims, you can expect insurance companies to give you the
turnaround if not ignore you outright. But here’s how you can get them to
cooperate bit by bit. Tell them about your case and ask for the best repair
shop affiliated with them. In this case, don’t let that damage linger. Have
your vehicle repaired immediately and hope that the shop recommended (nay,
imposed) by your insurer will do a brilliant job of restoring your vehicle.
Later when you come across the term “Repair-Related Diminished Value,” you
would appreciate the difference between going all out and going cheap on those
repairs.
While your car is in
the shop for rehabilitation, this would be the best time now to research on the
value of your vehicle prior to the accident. This would serve as your take-off
point in determining its eventual resale value.
Getting a Diminished Value Appraisal
After your car has
rolled out of the repair shop, it’s now time to get a professional appraiser.
They will arrive at an estimate of your car’s current value based on what it
was worth prior to the accident (which could be largely based on your research)
and what it’s worth after repairs. What is crucial here is the quality of
repairs done on your vehicle. If it turned out that the shop that your
insurance company recommended did hasty repairs that failed to restore your
vehicle at least close to its original form, then you can be loading up your
ammo when it’s finally time to file your claim. It’s important that you have
this appraisal documented so you can make a very good case.
Making the Diminished Value Claim: Outcomes
Here are two
possible scenarios when you finally make your diminished value claim with your insurance company or the third
party’s insurer. They can reject it outright or offer compensation less than
the diminished value claim. Do not flinch or back down or, worse, give in to
their persistence. If they remain adamant in
short-changing you, then off you go to your next step which is to take your
case to a small claims court. If the diminished value claim is in the area of
thousands of dollars, then this would be worth the trouble.
However, if the
filing fees and legal costs will prove much more than the diminished value
claim, most especially if you’re trying to fight for a vehicle that has seen better
days, then maybe it’s best not to pursue the claim at all.
