Did you know that after your vehicle was damaged in a car accident, it loses value? That’s right – even if you have it fully repaired to its pre-crash state, the car accident remains part of your vehicle’s record. This means that if you try to sell it, even after being restored, it has a diminished value.
In Indiana, crash victims are allowed to recover compensation for the difference between their damaged vehicle’s resale value and what it would have been in it’s pre-crash state. However, it is important to point out that this is not a separate claim. It is part of your overall personal injury claim against the at-fault party who caused your car accident.
At Pfeifer, Morgan & Stesiak, our experienced South Bend car accident lawyers have been helping crash victims hold at-fault parties accountable for the damages they caused.
Not sure if you have a case? We offer a free consultation to discuss the circumstances of your car accident, including how it happened and who may be liable. We welcome your questions, and we are prepared to help you understand your legal options.
Call Pfeifer, Morgan & Stesiak for a FREE, no-risk case review today. (574) 444-0741
What Is a Diminished Value Claim?
A diminished value claim is not a separate claim. It is an additional loss you can add to your overall personal injury claim against the at-fault party who caused your crash.
Once your vehicle has been damaged in a car accident, its resale value usually drops, even after it has been repaired. The difference how much your vehicle was worth before the crash and how much it is valued at after it has been repaired is called the diminished value.
There are three types of diminished value:
- Immediate: This type of diminished value occurs immediately following the crash before any repairs have been made to the vehicle. It encompasses the difference in market value before and after an accident caused by a negligent driver.
- Post-Repair Residual Inherent: This is the lost value of a vehicle after it has been involved in an accident but has undergone full repairs and has been restored to its pre-accident condition.
- Repair-related – Any additional loss of value caused by poor repair work on the vehicle.
There are two types of diminished value claims accident victims can make:
- First-party – This claim is made by the vehicle owner or insurance policyholder against his or her own insurance company.
- Third-party – This type of claim is made by the owner of the vehicle against a negligent party’s liability insurance.
Accident victims generally make an inherent diminished value claim against a liable party’s insurance company.
Can I File a Diminished Value Claim?
In Indiana, you can claim the diminished value of your vehicle, but it is not a separate claim. It is a loss that you can include as part of your overall injury claim after a car accident caused by another party’s negligence.
How Do I Prove the Diminished Value of a Vehicle?
In order to recover compensation for the diminished value of a vehicle, you must prove your vehicle’s fair market value is less because of the accident.
This is usually done by working with an appraiser who can evaluate your vehicle’s:
- Make
- Model
- Mileage
- Condition prior to crash
- Quality of repairs
The next step is to compare your vehicle to another vehicle with similar qualities but no accident on its record. Typically, a vehicle loses about 10 percent of its “Blue Book” value after it has been involved in a collision. However, that number may differ depending on the extent of the damage and the quality of the repairs.
If your vehicle is not repaired properly, and you are claiming diminished value damages on your injury claim, you may need to also prove the substandard quality of the work. Testimony from a car repair professional may help to prove your vehicle’s diminished value.
Need Legal Help After a Car Accident in South Bend? Call Pfeifer, Morgan & Stesiak Today
After being injured in a car crash you did not cause, you want to make sure you work with a law firm that has a history of success.
At Pfeifer, Morgan & Stesiak, we work hard to ensure all of your crash damages are accounted for in your claim, so no money gets left on the table. From medical costs, property damage, pain and suffering, and the pre-crash value of your vehicle, we assess and calculate your losses accurately.
Worried about the cost of hiring a lawyer? We take cases on contingency, which means we take the financial risks up front, so you don’t have to. There are no upfront costs or out-of-pocket fees to pay. We only get paid our fees if we win your case.
Call our trusted South Bend law firm today. We are here to help you. (574) 444-0741
