How Diminished Value Works
Any vehicle is damaged in an accident suffers from depreciated value. Even if you repair the car to perfect condition, it won't be worth as much as the exact same car with no accidents. The value your vehicle loses after a crash, even with full repairs, is your diminished value.
Diminished value is paid in addition to your vehicle's repairs. Very few people file for diminished value after an accident, missing out on thousands of dollars in in their final settlement payout.
Why Diminished Value Claims Work So Well
Diminished value claims are so effective for a few reasons.
- Most people don't know they can file diminished value claims.
- Insurance companies rarely include diminished value in their settlement offers, even though they are legally obligated to do so.
- Insurance companies can be sued for not paying diminished value.
- Diminished value claims are often settled quickly when handled by a lawyer experienced in those claims.
Does My Accident Qualify for a Diminished Value Claim?
If you meet most of these guidelines you will likely qualify for a diminished value claim:
- Car is under 7 years old
- Accident happened in the last 2-4 years
- The vehicle is not leased
- Has under 100,000 miles
- You were not at fault*
*at fault drivers are still entitled to full diminished value if the accident took place in Georgia.
How to File a Diminished Value Claim
You can file a diminished value claim with or without a lawyer. If you let our diminished value team manage your case, the whole process takes 30-60 days, on average.
Considering a Lawyer?
Let our close-knit network of attorneys and specialists make the process easy for you. Benefits of using our diminished value team include:
Frequently Asked Questions
About DV
There are three types of diminished value. When filing a claim, we care about inherent diminished value. To calculate diminished value, appraisers follow a process like this:
- Determine the value of your car using Kelly Blue Book or something similar
- Apply a 10% cap (base loss value)
- Apply a damage multiplier (between 0 and 1)
- Apply a mileage multiplier (between 0 and 1)
This somewhat complicated formula is known as the 17c diminished value formula. This formula is not always the best choice for diminished value appraisals. Using a formula like the one we have internally is a better option.
In every state except Michigan, insurance companies are legally obligated to pay diminished value if the driver is not at fault.
Usually no, unless your crash took place in Georgia. Read more about diminished value laws in Georgia.
Yes, with pleasure.
DV with Us
We provide estimates for free. This helps you decide whether to pursue your claim or not.
Official Diminished Value Reports cost between $399 and $650. If you decide to pursue your claim with a trusted in-network lawyer, we will cover the cost of your report.
We can file your claim and negotiate for you using one of our in-network attorneys. If you elect for this, we receive a small split from the attorney after the case is closed. In other words, we don't get paid unless you get paid.
You'll receive a follow-up email with:
- estimate
- basic info
If we would advise pursuing a diminished value claim, you'll receive an offer to let us do the appraisal for you.
The process of negotiating your car accident settlement usually takes between 2-6 weeks. In some cases this process may take a few months.
If you pursue a diminished value case, you can sell your vehicle during the case without affecting your eventual payout.
The answer depends on which state. In Georgia, David Gastley of Gastley Law is the best.
Diminished Value Claims by State
Laws around diminished value cases vary by state. Select your state for specific info and resources.
Wondering which state is best for diminished value claims? It's Georgia.
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