Tips for Submitting a Successful Diminished Value Claim
I recently got rear-ended, and while my car has been fully repaired without any issues (thanks to the other party’s insurance, State Farm), I’ve just learned about diminished value claims. I’m curious about the best approach to successfully file one.
Should I check CarFax for the current value of my car (even though the repairs may not be reflected yet) and compare that to the Kelley Blue Book value of an identical model? Would it be more beneficial to visit a dealership to get an appraisal for my car’s worth?
I’m familiar with the overall process, but I’m specifically looking for recommendations on the best documents to submit or where to find solid proof of diminished value that will strengthen my claim. Any suggestions would be appreciated!
I’m sorry to hear about your accident, but it’s great that you’re looking into your diminished value claim. Here are some best practices to increase your chances of a successful claim:
Any communication with the other driver’s insurance company.
Get a Diminished Value Appraisal: Consider hiring a professional appraiser who specializes in diminished value claims. They can provide a detailed report assessing the loss in value, which can be key evidence for your claim.
Compare Values: Use multiple sources to establish the vehicle’s value:
Make sure to factor in mileage, condition, and any upgrades or features your car has that could affect its value.
Document Changes: If your repair hasn’t updated on CarFax yet, it may be helpful to wait for it to be updated. In the meantime, you can also include any existing CarFax reports showing your vehicle’s history as a point of contrast.
Establish Diminished Value: Clearly articulate the diminished value amount. This can be calculated in different ways, but the most common is the “3-tier” method, which assesses the pre-accident value, the post-repair value, and the diminished value.
Contact Your Own Insurance: If you’re having difficulty with the other party’s insurer, your own insurance agent may provide advice or even help with filing the claim.
Submit a Formal Diminished Value Claim: When you’re ready, submit the claim to State Farm including all documentation, the appraisal, and your calculated diminished value. Clearly explain your calculation and the rationale behind it.
Be Prepared to Negotiate: Understand that the insurance company may dispute your claim and offer a lower amount. Be prepared to negotiate by presenting your evidence firmly.
Consider Legal Advice: If you feel your claim isn’t being handled fairly, consulting with an attorney who specializes in insurance claims or diminished value may be beneficial.
Remember, persistence and thorough documentation are key to a successful diminished value claim. Good luck!