I’d like to explain what a diminished value claim is. Say you were in the market for a vehicle. There are two seemingly identical vehicles available to you. Same year, make, model and mileage for both; the only difference is one has been involved in an accident. The other vehicle has not. Would you pay the same amount for the two vehicles? If not, which one would you pay more for? It’s safe to say the vehicle you would probably pay more for is the vehicle lacking a history of prior accidents.

 

The fact of the matter is a car accident may cause your vehicle to lose value. A diminished value claim is the action you take against the person who caused the accident or their insurer for the automatic loss in value from a collision.

 

I know this may sound a little abstract so I will work through a hypothetical case to enhance your understanding. Say you are stopped at a red light in your one year old car when Bob rear ends you. Right before the accident, the vehicle was worth $35,000. Bob’s insurance company immediately offers to pay to repair your vehicle. Bob’s insurer pays $7,000 to repair the vehicle and it looks as good as new. A few days after the repair you decide to sell it. So you list it at $35,000, and your new purchaser thinks it is a fair price. But the new purchaser asks if the vehicle has been in any accidents. You admit that it has. Now, the purchaser is merely willing to pay $25,000 for the vehicle. That $10,000 difference is the basis of your claim.

 

Like any claim you will need proper documentation and evidence in order to be successful. At the Law Offices of Jose Fernandez we have the resources to appropriately prepare your case. If you believe you have a claim for diminished value, contact our office today for a free case evaluation.