Advice on Diminished Value Claims
Hi everyone! A month ago, my 2024 SRT Durango was rear-ended, and the other party was at fault. The repairs totaled around $25,000. I contacted their insurance adjuster to file a diminished value claim. They initially offered me $3,500, and after some follow-up, they increased it to $4,000. However, I still think this is a lowball offer intended to get me to settle quickly.
I’ve spoken with several dealerships, and they’re also having difficulty estimating a trade-in value due to the lack of used vehicles in my area. This is my first accident and my first experience with an insurance claim, so any advice you could offer would be greatly appreciated! Thank you!
It’s understandable to feel that the offers you’ve received for your diminished value claim seem low, especially considering the substantial amount of repairs done on your vehicle. Here are a few steps you can take to strengthen your position:
Research Diminished Value: Familiarize yourself with how diminished value is calculated and understand the factors that contribute to it (such as the severity of the damage, the vehicle’s pre-accident value, and the current market conditions).
Get Professional Appraisals: Consider hiring a certified appraiser who specializes in diminished value claims. They can provide a detailed evaluation of your vehicle’s current value compared to its pre-accident value, which can be beneficial when negotiating with the insurance adjuster.
Document Everything: Keep thorough records of all communications with the insurance adjuster, repairs done, and any market comparisons for similar vehicles. This documentation can support your claim and provide leverage in negotiations.
Gather Comparables: Look for similar vehicles in your area, especially those that have sold recently without any accident history. This data can help justify your claim amount and demonstrate the impact of the accident on your vehicle’s value.
Negotiate: Don’t hesitate to go back to the insurance adjuster with your findings. Present your research, including appraisals and comparable vehicle values, to negotiate a higher settlement.
Consider Legal Assistance: If negotiations stall, you might want to consult a lawyer who specializes in insurance claims. They can provide guidance and help advocate on your behalf.
Be Patient but Firm: Insurance adjusters may try to settle quickly, but you have the right to take your time and ensure that you receive a fair compensation. Stand your ground and be persistent in seeking a reasonable offer.
Navigating a diminished value claim can be complex, but with the right preparation and approach, you can work towards a more satisfactory resolution. Good luck!