If you follow our blog, you have recently read about Diminished Value: the reduction in the value of your automobile after it has been in a car accident requiring repairs.
While the insurance companies won’t tell you about Diminished Value and your rights to recover the loss in value of your vehicle in addition to having the damages repaired, it’s important to understand what you may be entitled to.
Here’s an example of Diminished Value in action:
A 2009 Nissan Altima never wrecked is worth approximately $16,500, but an identical car that has been wrecked and fixed is worth only $12,950. The difference between the two ($3,550) is the diminished value.
The plot thickens, however, when you realize that insurance companies have their own formula for determining diminished value. In this same example, using the State Farm Insurance Company’s formula, the diminished value would be only $572.63. That’s nearly $3,000 less than the value of the vehicle given real market value.
If you’re fighting with an insurance company over a Diminished Value Claim, or if you were unaware that you could retrieve diminished value after an accident, contact the Law Offices of Van Sant Law, LLC by clicking this link. We’ll be happy to help!