Diminished value claim question:
I was involved in a no-fault front-end collision with my 2024 SUV. At first glance, the damage seemed minor, and the body shop initially estimated the repair at $2,500 for the insurance adjuster. However, once they started the teardown, the repair costs skyrocketed to nearly $10,000 due to damage to the electronics and other internal components. While the insurance is covering the repairs from the at-fault party, should I also pursue a diminished value claim for my vehicle? Considering the high repair costs, the fact that it’s a newer model, and the potential impact on its resale or trade-in value, is it worth it to request this?
Yes, you should definitely consider submitting a diminished value claim. Even though the insurance is covering the repair costs, it’s important to recognize that a vehicle that has been in an accident, regardless of the quality of the repair, may have a lower resale or trade-in value.
Diminished value refers to the loss in market value that occurs after a vehicle has been damaged and repaired. In your case, since the repairs were extensive and costly, this could significantly affect the value of your 2024 SUV. You would want to document everything, including the repair history, the original value of the vehicle, and any market research showing how similar models with prior damage have sold.
It’s advisable to check your local laws regarding diminished value claims, as they can vary by state. Additionally, consider consulting with a professional appraiser or legal expert to help support your claim. Providing strong evidence will increase your chances of recovering that diminished value. Good luck!