Seeking Advice on Diminished Value Claim with Insurance Limitations
Hi everyone,
I was involved in a minor parking lot accident in October 2024 with another driver who is covered by a smaller insurance company that has a claim limit of $5,000. Unfortunately, the total repairs for my vehicle exceeded $8,000. I’m interested in filing a diminished value claim against the at-fault driver, but their insurance is saying this isn’t possible since the repair costs surpass their limit.
To give you some context, my car was valued at around $22,000, but similar models without accident history are selling for about $30,000. I’m wondering what options I have in this situation. Any advice would be greatly appreciated, and I can provide more details if needed.
P.S. I’m based in California. Thank you!
It sounds like you’re dealing with a frustrating situation. Here are some steps you can consider taking regarding your diminished value claim:
Document Everything: Make sure you have all the necessary documentation, including repair estimates, photos of the damage, your vehicle’s current market value, and comparisons to similar vehicles without damage.
Diminished Value Valuation: Get a professional appraisal to determine the diminished value of your vehicle. You might want to seek out an independent appraiser who specializes in diminished value calculations. This will give you a stronger basis for your claim.
Review Insurance Policy: Look at the at-fault party’s insurance policy to confirm the limits. Sometimes, there may be additional coverages or options that can be utilized.
Negotiate with Insurer: Present your findings and the appraisal to the at-fault party’s insurance company. Explain that the diminished value of your vehicle is separate from the repair costs; they may still be liable for that loss.
Consider Your Own Insurance: If you have comprehensive or collision coverage, check if your own policy allows you to pursue a claim for diminished value under uninsured or underinsured motorist coverage.
Legal Advice: If negotiations with the insurance company don’t lead to a satisfactory resolution, consider seeking legal advice. A lawyer familiar with California insurance claims can provide guidance and help you navigate the situation.
File a Complaint: If you feel that the insurance company is not complying with their obligations, you can file a complaint with the California Department of Insurance.
Remember that California law allows for diminished value claims, even if repairs exceed the at-fault driver’s insurance limits. Good luck, and don’t hesitate to reach out for professional help if needed!