Has your car been damaged? You need to make a claim for Diminished Value.
If your vehicle has been damaged and there has been either a police report, it was towed from a scene of an accident, or went in for repair at a dealership—even if it was repaired to near-perfect condition—its market value has decreased. This loss in value is known as diminished value, and you need to make a claim against the responsible party and their insurance company.
What is Diminished Value?
Diminished value refers to the difference between a vehicle’s market value before an accident and its value after repairs, even if the repairs restore it to its pre-accident condition.
Why does it Happen?
Even with proper repairs, a vehicle with an accident history is often considered less desirable to potential buyers, reducing its resale value.
Can You File a Claim?
Yes. If another driver was at fault, you can file a diminished value claim against their insurance company to recover your financial loss.
How to Prove Your Claim?
To successfully claim diminished value, you must provide evidence that your vehicle’s market value has decreased post-accident. This typically involves obtaining an appraisal from a qualified expert.
Diminished Value in Illinois
If you are in Illinois, you have the right to claim diminished value from the at-fault party’s insurance company after an accident. Diminished value refers to the reduction in a vehicle’s market worth, even after professional repairs.
To successfully claim diminished value in Illinois, you must demonstrate that your vehicle has suffered a material loss in value due to the accident. This is typically done by obtaining an expert appraisal comparing your car’s pre-accident and post-repair market values. Once you have this evidence, you can file a claim with the at-fault driver’s insurance company, providing all necessary documentation to support your case.
If the insurance company disputes your claim, you may need to pursue legal action. To strengthen your case, you should gather supporting evidence, such as independent appraisals, market value comparisons, and records showing your vehicle’s condition before and after the accident. By following this process and presenting solid proof, you can effectively claim the diminished value of your vehicle in Illinois.
Factors Affecting Diminished Value
The severity of the damage, the age and condition of the vehicle, and the quality of the repairs can all impact the amount of diminished value.
Types of Diminished Value
Several factors influence the amount of diminished value a vehicle experiences after an accident, even if it has been properly repaired, including:
Immediate Diminished Value
This refers to the reduction in market value that occurs immediately after the accident, before any repairs are made. Buyers and dealers perceive a vehicle involved in an accident as less valuable, regardless of its condition.
Inherent Diminished Value
This is the most common type of diminished value and occurs when a vehicle loses value solely because of its accident history. Even after high-quality repairs, buyers may be hesitant to pay the same price as they would for a vehicle with a clean history.
Repair-Related Diminished Value
This results from improper or substandard repairs. If non-original parts are used, or if there are visible flaws in the repair work, the vehicle’s market value may be further reduced beyond its inherent diminished value.
We stand for your rights!
At FS CORPS, a trusted Illinois law firm, our attorneys specialize in diminished value claims. We understand the complexities involved in proving a vehicle’s post-accident depreciation. With in-depth knowledge of insurance regulations and vehicle valuation, we provide strong representation to secure the compensation you deserve.