Were you in an accident where your car was severely damaged?
Even if you weren’t hurt in a car accident, I bet your car was. After you repair your car following an accident, you likely want to know what you’re entitled to. A diminished value claim can do just that. This type of claim allows you to recover the difference between your car’s value before the accident and its value after repairs.
Is the Insurance Company Not Paying Out?
Alabama recognizes diminished value claims, meaning that drivers can pursue compensation from the at-fault party’s insurance for the loss in the value of their car after an accident. The state follows the legal principle of “tort liability,” where the at-fault driver is responsible for covering all damages resulting from the accident, including the diminished value of a vehicle.
Why You May Need Legal Aid
You can also file a third-party claim. This means you can seek compensation from the at-fault’s insurance. However, most insurance policies in the state do not cover claims that are filing against your own insurance.
The Lawyer’s Role in Diminished Value Claims
To file a claim, you likely need to get an independent appraisal to determine the reduced value of your car. Then, contact the necessary insurance company to file the claim. Consider contacting a diminished value attorney, as they have a great amount of experience dealing with insurance companies and know how to negotiate. Almost all PI attorneys offer a free consultation. This will also relieve some of the stress on your part.
Types of diminished value claims:
- Immediate Diminished Value: These claims refer to the immediate loss of value in your vehicle following a car accident.
- Inherent Diminished Value: These are the most common type of claims. This is the reduction of value due to a car accident even after repairs. Most people view cars with an accident history as less valuable.
- Repair-Related Diminished Value: If the vehicle is not properly repaired or repaired using substandard parts, this can further reduce the value.
However, even if your car is restored to its original condition, its market value will typically drop since the car has been in an accident.
Steps to File a Diminished Value Claim
When filing your diminished value claim in Huntsville, there are a few things you must consider.
Are You Eligible?
Are you eligible to file this claim? In Alabama, only the not-at-fault driver can file for any type of diminished value claim. If you are responsible for the accident, you cannot file.
File Your Claim Promptly
It is imperative to file your claim as soon as you can following the accident. The Statue of Limitation (SOL) is 2 years after the accident date in Huntsville and surrounding areas.
Gather Necessary Proof
Additionally, you will need proof of your vehicle’s value before the accident as well as after. It may be necessary to get an appraisal or an expert’s opinion to validate the claim, as you will need descriptive info on the repairs made.
Seek Legal Assistance
If you have been injured in one of these accidents, we suggest hiring a Huntsville Personal Injury Lawyer, as they are experts in dealing with insurance companies and claims.
The Insurance Company’s Role
The at-fault party’s insurance company will assess the diminished value claim. They may challenge the claim or offer a settlement lower than the actual diminished value. In these cases, having a professional appraisal or legal help may be necessary to negotiate a fair settlement.
If you’re involved in an accident and believe your car has lost value despite repairs, it may be worth pursuing a diminished value claim to recover that financial loss.
Many believe that pursuing a diminished value claim is more trouble than it’s worth. The process can be time-consuming, and insurance companies often undervalue the claim, leading some to feel that the outcome doesn’t justify the effort, especially for minor accidents. This is why a legal expert may need to be considered and having knowledge on the subject can change thoughts such as these for North Alabama residents.
Common Misconceptions
A common misunderstanding is that diminished value claims are automatically included in every insurance policy. Not-at-fault drivers can pursue these claims against the at-fault driver’s insurance, but if you’re at fault, your own policy may not cover diminished value unless you have specific coverage like gap insurance.
Most people also assume that if their insurance company doesn’t inform them of the possibility to file for diminished value, they have no right to pursue it. This is false. Insurers aren’t required to voluntarily inform drivers of this option, but it’s still possible to file a claim if you know your rights.
“If the damage is minor, I can’t file a diminished value claim.” This is not true. Even minor accidents can impact a vehicle’s value, especially if the damage is recorded in vehicle history reports. Regardless of the severity, if the vehicle’s value is affected, a claim can be filed.