[MN] Should I file for diminished value?
I’m trying to get a better grasp on diminished value claims and whether it’s worth pursuing. I own a 2020 Mercedes-Benz GLC300 with 40,000 miles. The Kelley Blue Book (KBB) value for my vehicle is approximately $23K-$26K, but dealerships are listing similar models (2020 GLC300 with less than 50K miles) for $34K and up.
My car was in immaculate condition until someone at work backed into it, causing damage to the bumper and leaving scratches on two panels. The cost of repairs is estimated to exceed $6K.
Since the other driver is liable, should I inform their insurance right away that I intend to seek a diminished value claim? How is diminished value calculated? Is it determined by KBB, current market prices, or some other method? Would the diminished value represent the gap between my car’s value before the accident and its new value according to KBB, or is it based on what it would sell for at a dealership before and after the incident?
Pursuing diminished value (DV) is worth considering, especially since you have a relatively new luxury vehicle that was in perfect condition before the accident. Diminished value refers to the reduction in a vehicle’s market value due to damage, even after repairs are made.
Notification to Insurance: You can certainly inform the other driver’s insurance company that you plan on claiming diminished value. However, it’s often best to wait until you receive the repair estimate and have a clearer picture of the situation. Make sure to gather all relevant documentation about your vehicle’s condition before the accident and after repairs.
Calculation of Diminished Value: There are a few methods to calculate diminished value:
Expert Evaluation: Sometimes, getting an appraisal from a professional can substantiate your claim and provide a more accurate DV value.
Documentation: It’s important to keep all records related to the damage, repairs, and any communications with the insurance company. Photos of the damage, repair invoices, and market listings will strengthen your case.
Negotiation: Be prepared to negotiate with the insurance company. They may initially offer a lower amount than you expect, so having your documentation and a clear understanding of the market will help you in discussions.
In summary, yes, you should consider pursuing diminished value, especially since your vehicle has substantial market value and the damages are significant. Start gathering your documentation and get ready to present your case to the other driver’s insurance company. Good luck!