Diminished Value Claim?
I experienced a no-fault front-end collision with my 2024 SUV. Although the exterior damage initially appeared minor and the body shop estimated repairs at $2,500, the cost has now skyrocketed to nearly $10,000 after the teardown revealed significant damage to the electronics and other internal components. While the insurance will cover the repairs through the at-fault party, should I also consider filing a diminished value claim for my vehicle? Given the high repair costs, the fact that it’s a recent model, and the potential impact on its resale or trade-in value, I want to ensure I’m addressing all my concerns. What do you think?
Yes, you should definitely consider filing a diminished value claim. Although your SUV is being repaired, a vehicle that has been in an accident—even one that was relatively minor—can lose value due to the perception of damage, regardless of the quality of repairs.
Here are a few steps you can take:
Document Everything: Keep records of all repairs, including the pre-accident value of your SUV, the repair costs, and any correspondence with your insurance company.
Get an Appraisal: Consider getting an independent appraisal done to assess the diminished value of your vehicle post-repair. This can help you present a strong case.
Understand Your State’s Laws: Diminished value claims can vary by state, so familiarize yourself with your local laws regarding these claims and the process involved.
File a Claim with the At-Fault Party’s Insurance: Since the repairs are being covered by the at-fault party’s insurance, you’ll want to negotiate the diminished value claim with them as well.
Present Your Case: When you file your claim, make sure you present all the evidence you’ve gathered. Be clear about how the accident has impacted your vehicle’s market value.
Keep in mind that the process can take some time, and be persistent in following up on your claim. Good luck!