Part of your insurance claim after a car accident will compensate you for the diminished value of your vehicle. But what exactly is a diminished value claim? How is it calculated in Florida? And most importantly, how can you make sure that you get a fair appraisal and receive the maximum amount of compensation possible for your vehicle’s loss in value?
In this article, we’ll answer all those questions and more. So, let an experienced Tampa car accident lawyer explain how diminished value claims work in the Sunshine State.
What Exactly Is a Diminished Value Claim?
A diminished value claim is an insurance claim after a loss in the resale value of a vehicle after an accident. When a car is involved in an accident, its market value can decrease significantly even if it’s repaired to its pre-accident condition. You can therefore file an insurance claim to get compensation for this loss in value.
Diminished value claims are often complex and challenging to prove without expert opinion on how much money your auto insurance company should pay you as compensation. This highlights the importance of contacting a Tampa car accident lawyer with experience handling these cases.
Now, let’s look at the three types of diminished value claims in detail.
Repair-Related Diminished Value
Repair-related diminished value is a type of loss that occurs when you repair your vehicle after an accident. Even if the repairs are done perfectly and your car looks as good as new, it may still be worth less than it was before the accident occurred. This is because potential buyers are often wary of purchasing cars that have been involved in accidents, even if they have been fully repaired.
There are several factors that can affect the amount of repair-related diminished value your car experiences. One major factor is the severity of the damage sustained in the accident. If your car had minimal damage and was quickly repaired, its diminished value may be less than a car with extensive damage.
Another factor to consider is whether or not original equipment manufacturer (OEM) parts were used in the repairs. Using OEM parts can help preserve some of your car’s pre-accident value while using aftermarket or generic parts can decrease its overall worth.
It’s important to keep these factors in mind when filing a diminished value claim for repair-related losses. By working with an experienced Tampa car accident lawyer who understands Florida law and how to calculate damages accurately, you can ensure that you receive fair compensation for any losses incurred due to repair-related diminished value.
Immediate Diminished Value
Immediate diminished value is a type of diminished value that arises from the mere fact that a vehicle has been involved in an accident. This kind of diminution affects the resale value and marketability of the car, even if it was fully repaired.
To put it simply, immediate diminished value refers to the loss in value that occurs immediately after an accident, but before any repairs are made. As soon as a car is involved in an accident, its perceived market value drops – regardless of how well it is eventually repaired.
This type of diminution can be particularly concerning for owners who may be planning to sell their cars shortly after having them repaired. Prospective buyers will always ask about accidents and use this information to try and drive down prices.
Therefore, when seeking compensation for immediate diminished value claims in Florida, you should always engage experienced Tampa car accident lawyers who know exactly how to calculate these losses appropriately.
Inherent Diminished Value
Inherent diminished value is the reduction in a vehicle’s worth due to an accident that leaves behind damage that cannot be fully repaired, no matter how well the repairs are done. Inherent diminished value is determined by factors such as the age and mileage of the car before the accident, pre-accident condition, the severity of damages sustained, and the type of repair performed.
This type of diminished value is usually calculated after professionally repairing the affected parts and assessing their overall quality post-repair. The inherent loss can be caused by any form of damage ranging from scratches on paint to malfunctioning mechanical systems or faulty electrical components.
It should also be noted that inherent diminished value claims are generally harder to prove than other types because they require strong evidence proving a direct link between damage sustained and reduced market value. Getting an expert opinion from certified appraisers would go a long way toward helping your claim for compensation.
If you feel like your car has suffered significant damages due to someone else’s negligence resulting in inherent diminished value, it’s advisable to seek help from experienced Tampa car accident lawyers who specialize in these kinds of cases and have extensive knowledge about Florida laws surrounding them.
How Is Diminished Value Calculated in Florida?
When you file a diminished value claim in Florida, one of the key factors that determine the amount of compensation you receive is how your vehicle’s diminished value is calculated.
Insurance companies often use industry-standard formulas combined with data on local market demand for vehicles similar to yours. Factors such as age and condition prior to the accident may also be taken into consideration when determining how much compensation you should receive.
The most frequently used method of calculation is the 17c formula. Thus, the insurer will take 10% of the book value of the car and applies a modifier depending on the extent of damage and the mileage of the car.
It can be daunting trying to navigate all these calculations on your own which is why it’s important you reach out to professionals who look out for your best interests. A Tampa car accident lawyer will ensure that your diminished value claim is fair and compensates you for the lost residual value of your wrecked vehicle.
Contact an Experienced Tampa Car Accident Lawyer to Make Sure You Get a Fair Appraisal!
A diminished value claim is an important aspect of car accident compensation that should not be overlooked. There are different types of diminished value claims, including repair-related, immediate, and inherent. Each type requires specific calculations to determine the actual loss in market value.
If you’re looking to file a diminished value claim in Florida, it’s best to consult with a skilled Tampa car accident lawyer who can help you navigate the complexities of this legal process. An experienced attorney will ensure that your appraisal is fair and accurate so that you receive the compensation you deserve.
At Florida Lawyers 360, you can count on a legal team with extensive experience handling diminished value claims. We will make sure that you get the accurate dollar value, not just a few cents for your damaged car.
We offer every new client a free case review, giving you the chance to present the facts about your case. We will give you a reliable legal opinion and represent you on a contingency fee basis if your case has merit.
Call us at 786-249-7999!
