A diminished value claim is a demand for the lost fair market value of your vehicle following an accident. Diminished value refers to the difference between your car’s value before and after the accident. When you file a diminished accident claim, you are requesting compensation for the money you will lose when selling your vehicle because of the damages done to it in the collision.
You should file your diminished value claim as soon as possible following the accident. Recovering compensation from the insurance company for diminished value can be a complex process. However, with the right car accident lawyer on your side, your diminished value claim can be a success.
After being in an accident in New Jersey, you should not have to worry about losing money when you sell your vehicle. At Judd Shaw Injury Law, we understand the financial toll a major car accident can have on you and your family. Contact us today for a free consultation at 1-866-909-6894 or complete the contact form.
Common Causes of Diminished Value Claims
Some car accidents only result in scratched paint or a dented bumper, while other collisions cause more significant damage.
The following are some causes of diminished value claims:
- Dented frame: Damage to the frame of a vehicle can be difficult and expensive to repair, so this can significantly affect a car’s resale value
- Deployed airbag: Airbags that deploy during an accident may cause damage to the interior of the vehicle and thus lower its value
- Flood damage: Vehicles that have been submerged in water tend to have mechanical and electrical problems that are difficult – and therefore costly – to fix
- High-impact accidents: Cars involved in high-impact collisions usually sustain major mechanical and structural damage that significantly affects their resale worth
Factors That Affect a Vehicle’s Diminished Value Following a Car Accident
Determining how much your car has diminished in value after an accident could require the expertise of appraisers, auto body workers, and other professionals.
Factors commonly taken into consideration when determining the diminished value of a vehicle include:
- The age of the car
- The number of miles on the vehicle
- The cost to restore the vehicle to pre-accident condition
- The make and model of the vehicle
- The market demand for similar vehicles in your area
How to Recover Diminished Value From the Insurance Company
Car accidents in New Jersey are an all-too-common occurrence. A recent report from the New Jersey Department of Transportation showed that there were close to 49,000 crashes resulting in injuries in just 2021.
Most drivers in New Jersey are aware that they have the right to pursue compensation for their medical expenses, property damage, and lost wages following a car accident. However, some people may not be aware that they also have the right to pursue compensation for the diminished value of their vehicles.
The following are some steps that are commonly involved in recovering diminished value compensation:
- Collect evidence: Solid evidence is essential to the success of any car accident claim. Photos, video surveillance footage, police reports, and eyewitness statements are examples of evidence commonly used in car accident cases.
- Get appraisals: Consult experienced diminished value appraisers and auto body experts to get appraisals and repair estimates to support your claim. If possible, do not get just one quote; speak to multiple diminished-value professionals to be safe.
- File a claim: If your accident occurred due to another driver’s negligence, you can file a diminished value claim with the other driver’s insurance company. If the other driver was uninsured, you may be able to file a claim with your insurer, depending on the terms of your policy.
- Negotiate a settlement: Keep in mind that you do not have to accept the first offer the insurance company offers for your diminished value claim. It may be necessary to negotiate with the insurer to receive a fair settlement.
- Hire a diminished value lawyer: If you were involved in a severe car accident, it is likely in your best interests to consult a personal injury lawyer who can handle all communications and negotiations with the insurance company on your behalf.
When to File a New Jersey Diminished Value Claim
In New Jersey, the diminished value of your vehicle is recoverable either by filing a claim with the at-fault driver’s insurance company or through your own Uninsured Motorist Coverage.
Most states have statutes of limitations on property claims. The statute of limitations on diminished value claims in New Jersey is 6 years from the date of the accident.
Even though you have 6 years to pursue compensation, it is recommended that you file your diminished value claim as soon as possible after your motor vehicle accident. It is easier to provide repair estimates and other supporting documents ASAP after the accident, since evidence is less and less recoverable over time.
It is also in your best interests to provide the insurance company with an estimated market value for your vehicle shortly after the accident since the market value will depreciate over time.
Get Help Filing Your New Jersey Diminished Value Claim Today
Has your vehicle lost value due to an accident caused by another driver? You have the right to be compensated for your car’s diminished value. The sooner you file a claim, the better your chance of recovering fair compensation for your loss.
When you have Judd Shaw Injury Law on your side, we will properly evaluate your damages to make sure you can recover your losses in full – as far as is possible. Our lawyers are skilled negotiators, and we will not back down until you receive the compensation you deserve.
Our car accident lawyers understand the financial toll a major car accident can take on a family. We care about our clients and strive to make a difference in their lives.
Since we go by the “Judd Shaw Way,” our law firm only handles diminished value claims on contingency. This means you do not pay us anything unless your claim is successful and we recover compensation for you. Call us today at 1-866-909-6894 or complete the online contact form to schedule a free case evaluation.
Content edited by personal injury attorney Judd Shaw. From the beginning, Judd established a set of Core Values laying out the pursuit for excellence in client service. He is a regular host of the Working The Wow podcast, with the belief that providing an exceptional client experience is just as important as delivering a quality service or product. You can find us in Red Bank and Tom‘s River, New Jersey.