Diminished Value Car Accident Claims
July 5, 2023 | J.L. King, II
You may sustain several types of damages when you are involved in a Tifton car accident. Damages include your injuries and non-economic damages. They also include your economic damages, including property damage.
Property damage is the harm to your vehicle caused by the collision. Georgia is an at-fault state for car accidents. Therefore, you can file an insurance claim or lawsuit against the at-fault party for the cost of repair or replacement of your vehicle.
Additionally, you can seek compensation for a diminished value accident claim. This claim is in addition to the cost of repairing your vehicle after a car accident.
What Is a Diminished Value Accident Claim?
Regardless of how well your car is repaired, its value will decrease after an accident. The accident is reported on a CarFax report and other similar sources. An individual or dealer purchasing the car will consider the crash when making an offer to purchase the vehicle.
Therefore, it might be in your best interest to file a claim with the insurance company for compensation in the amount of the diminished value of your vehicle. The diminished value is equal to the differences in the vehicle’s fair market value before the accident versus after the accident.
Unfortunately, insurance companies often deny or undervalue these kinds of claims. If a person does not realize they can file a claim, the company will not tell them.
The best way to protect your right to receive the total compensation you deserve after a car crash is to talk with a Tifton car accident lawyer before accepting a settlement offer. After doing so, you generally give up the right to sue the at-fault driver, which might leave you thousands of dollars short of the value of your car accident claim.
Georgia Requirements To File a Diminished Value Accident Claim
Georgia laws address diminished value accident claims. Before you can require compensation from the insurance company, you must meet specific requirements for the claim. A Tifton car accident lawyer can help you determine if you meet the following requirements:
- Your vehicle must be less than ten years old;
- It must have a market value of at least $7,000;
- The vehicle cannot have a salvaged or rebuilt title; and,
- Your vehicle cannot have excessive mileage (i.e., more than 30,000 miles).
It is important to note that if your vehicle was involved in more than one accident that caused extensive property damage, a claim for diminished value could be dismissed. Also, if you signed a waiver or release of liability, your claim may be dismissed. Therefore, before signing any documents for the insurance company, ask a lawyer to review the documents to explain the legal consequences.
What Is the Statute of Limitation for Diminished Value Claims in Georgia?
The statute of limitations sets deadlines for filing claims. The deadlines vary depending on the type of claim.
Diminished value claims generally have a four-year statute of limitations in Georgia. However, some exceptions change the deadline. It is best to consult an attorney to determine the filing deadline for your case.
Is There an Average Amount for Diminished Value Accident Claims in Georgia?
There is no standard formula for calculating how much a diminished value accident claim is worth. You can find diminished value calculators online, but they are not reliable or accurate. The specific facts of the case must be considered.
An attorney can help you locate resources to obtain estimates and appraisals that establish the value of your vehicle before and after the crash. These statements provide a basis for your claim.
What Happens if the Insurance Company Denies My Claim for Diminished Value?
Insurance companies treat all claims with the same goal: pay as little as possible to resolve the dispute. Therefore, the company will offer a very low amount to settle your diminished value claim.
In some cases, the insurance adjuster might tell someone their case does not qualify for diminished value. If the person is unfamiliar with the law governing diminished value accident claims, they might give up. That is precisely what the insurance company wants.
Sometimes, an insurance company refuses to pay a valid claim. In those instances, the company could be guilty of bad faith. You could have grounds for a bad faith insurance claim in addition to a diminished value claim.
When you contact an experienced car accident lawyer, you are more likely to receive a fair amount for your losses and damages. The insurance company knows it cannot bully or trick an experienced personal injury lawyer. Therefore, the company may be more willing to offer a fair settlement when an attorney handles the accident claim.
Contact Our Car Accident Law Firm For Help Today
For more information, please contact The King Firm at your nearest location to schedule a free case evaluation today.
Tifton Office
1603 US Hwy 41, Tifton, GA 31794
(229) 386-1376
Griffin Office
3317 Fayetteville Rd, Griffin, GA 30223
(404) 567-4546
Or if you would prefer to reach out to us online, please visit our contact us page.