Question 1

What Is a Diminished Value Claim?

Accepted Answer

A diminished value claim is a way to recover property damages. When you are in an accident, the amount of damage to your vehicle can vary between minor scratches and other cosmetic damage on one hand, to rendering the vehicle entirely unusable on the other.

Question 2

What Types of Diminished Value Are There?

Accepted Answer

There are three main types of diminished value. Depending on the circumstances of your case, you will want to file one of the following claims:

Inherent diminished value,
Immediate diminished value, or
Repair-related diminished value.

Inherent diminished value refers specifically to the loss of a vehicle’s worth or market value.

Inherent diminished value applies when you have made repairs to your vehicle, but its value still decreases. Immediate diminished value refers to the difference in your vehicle’s resale value before the accident vs after the accident.

Immediate diminished value applies only if you have not made repairs to your vehicle. Finally, repair-related diminished value refers to your vehicle’s loss in value because of faulty repairs, less reliable replacement parts, and any damage that has yet to be repaired.

Question 3

What If the Insurance Company Denies My Diminished Value Claim?

Accepted Answer

Sometimes insurance companies are quick to deny diminished value claims. One reason for this is that many attorneys do not take on diminished value claims unless they are already representing a party.

Knowing this, insurance companies deny diminished value claims in hopes that the party making the claim will drop it. If you already have an attorney, you can have your attorney appeal the insurance company’s denial directly to them.

Otherwise, you can take your Texas diminished value claim to small claims court or initiate litigation in your local court system to recover your vehicle’s diminished value. In any case, if an insurance company denies your claim, keep trying.

Car Accidents