How Diminished Value Claims Are Calculated

Diminished value claims are an excellent way to get compensated for your car’s lower resale value after a wreck. But, there are many factors that must be taken into account, such as state regulations, the extent of the damage and the age of your vehicle. To help you understand how these claims are calculated, this article will discuss three common types of diminished value calculations.

The first step is to determine your car’s value before the accident. This can be done by using online resources such as Kelley Blue Book or NADA. Once you have this information, subtract the current market value of your vehicle from its original value to arrive at a base loss of value. Then, take 10% of this number to find the maximum amount insurance companies will pay for a diminished value claim. This step is called the “cap.”

After the cap has been established, insurers then calculate what they believe the damage to your vehicle will reduce its resale value by using a damaged value multiplier. This factor is based on a variety of criteria such as the level of repair, mileage and whether or not any structural damage has been sustained. It is also based on the accident type and who was at fault for the collision.

Once the insurance company has determined a final figure, they will offer you this amount in your diminished value settlement. However, you may be able to negotiate a higher amount by presenting your evidence in a compelling manner. For this reason, it is vital to choose an experienced diminished value specialist to guide you through the process.

A diminished value expert can provide you with the support and representation you need to ensure you receive a fair and full payment for your car’s diminished value. They can also help you understand the specific laws in your area as some states have different regulations regarding these claims. They can also assist you in obtaining gap insurance, which is a policy that covers the difference between what you still owe on your car loan and the actual cash value of the vehicle in the event of theft or an accident.

When choosing an attorney, it is important to look for one that has a reputation for success in diminished value claims. They will be able to effectively represent you against the insurance company and work diligently to get you the compensation you deserve. They will also be able to answer any questions you have about the process, including how the insurance company will calculate your diminished value.

If you have been in a car accident in Queens that was someone else’s fault, contact the Tadchiev Law Firm today to learn more about filing a diminished value claim. We can also evaluate your options for seeking compensation for other expenses and losses stemming from the accident. To set up a free consultation with an attorney, call or email our office.