[MN] Considering Diminished Value: Is It Worth Pursuing?
I’m trying to wrap my head around diminished value and whether it’s something I should pursue. I own a 2020 Mercedes-Benz GLC300 with 40,000 miles on it. The Kelley Blue Book (KBB) value is approximately $23,000 to $26,000, but similar vehicles with under 50,000 miles are listed at over $34,000 at various dealerships.
My car was in perfect shape until an incident at work where someone backed into me, causing scratches on two panels and a dent. The repair costs are estimated to exceed $6,000.
Since the other driver is at fault, should I inform their insurance company right away that I’m seeking diminished value? How is this calculated? Is it determined by KBB values, current market listings, or a different factor? Would the diminished value reflect the difference between my car’s value before the accident and the new KBB value, or does it account for what I could sell it for at a dealership pre- and post-accident? Any insights would be greatly appreciated!
When considering a diminished value claim, it’s important to understand how it works and what factors are involved in the calculation. Diminished value refers to the depreciation in your vehicle’s worth due to an accident, even after it’s been repaired.
Here are some points to help you navigate your situation:
Communicating with Insurance: It’s generally a good idea to inform the other driver’s insurance company that you are pursuing a diminished value claim. However, you may want to wait until you have all your information organized before making the formal request. This includes gathering evidence, such as repair estimates and market comparisons.
Calculating Diminished Value: There are a couple of commonly used methods to calculate diminished value:
Diminished Value Formula: Some insurance companies use a formula, such as the “17c” formula, which considers the car’s pre-accident value, the severity of the damage, and the age of the vehicle.
Documentation: Gather documentation that supports your claim:
Keep all repair estimates, photos of the damage, and records of comparable sales of similar vehicles in your area.
Negotiation: Once you have your information compiled, you’ll likely enter negotiations with the insurance adjuster. Be prepared to present your case clearly, with detailed explanations of how you arrived at your diminished value figure.
Consulting a Professional: If you’re unsure about handling this process or if the insurance company is not cooperating, it might be beneficial to consult with an attorney or an expert in auto claims to assist you.
In summary, you certainly have grounds to pursue a diminished value claim given the significant damage to your vehicle and the discrepancy in market value. Just make sure you have your figures and documentation in order before you approach the insurance company. Good luck!