When you get into a car accident, one of the losses you can suffer is diminished vehicle value. This refers to a loss in value of its resale price due to property damage. Even if your vehicle gets fully repaired, it will have a diminished value from being in a car accident. Filing a diminished value claim after a car accident in California can result in financial compensation for this loss.
What Is Diminished Value?
Diminished value in a California car accident case refers to the difference in what a motor vehicle likely would have sold for had it not been involved in a car accident versus what it can be sold for now, after full repairs. Even if the vehicle looks the way it did prior to the collision on the outside, the fact that it was damaged in a crash diminishes its value, as it could potentially weaken the car’s frame or infrastructure. This is known as diminished value or “diminution in value.”
How to Calculate a Vehicle’s Diminished Value
Calculating diminished value takes knowing what your car was worth prior to the accident and what it is worth now. You may be able to get these values by hiring a professional vehicle appraiser, reviewing comparable sales of similar motor vehicles with and without a history of accidents, or using online tools such as Kelley Blue Book for estimates.
How to File a Claim for Diminished Value in California
California law allows you to file an insurance claim or lawsuit seeking financial compensation for diminished vehicle value after an automobile accident. To file this type of claim, you must first determine whose insurance is liable, or financially responsible. Typically, an insurance company will not inform you of the right to file a diminished value claim. You must recognize this opportunity and initiate the claim yourself, with or without help from an Orange County car accident attorney. If the other driver is at fault for the car accident, his or her insurance can be used for compensation for diminished value. Your own car insurance policy will only offer this type of coverage if you have the right kind of insurance, such as collision insurance.
What Is the Statute of Limitations on a Diminished Value Claim?
Under the state’s statute of limitations, a diminished value or property damage claim in California must be filed within three years of the date of the car accident. Note that this is one year longer than the statute limitations on a personal injury claim (two years). This is the deadline for a lawsuit only; an insurance claim should be filed as soon as possible.
Do I Need to Hire an Attorney for a Diminished Value Claim?
If you are filing a claim solely for property damage, including a vehicle’s diminished value, you typically do not need an attorney. In fact, most personal injury lawyers will not accept cases for diminished value only. The claim must also involve bodily injuries. If diminished value is just one damage you wish to pursue in addition to medical bills, lost wages and various other losses related to a physical injury or emotional distress, however, an attorney can be invaluable. A lawyer can take over negotiations with a car insurance company to fight for fair compensation for the diminished value of your vehicle, among other losses. With help from your lawyer, you can get the case results you need to move forward with your life after a motor vehicle collision. To learn more about how an attorney can help you with a diminished value claim, contact Bridgford, Gleason & Artinian for a free consultation.