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After a Car Accident is My Car Worth Less?

Rick Millian • Apr 10, 2019

What is your cars value after an accident?

Imagine you are involved in a car accident, your car is towed from the scene of the accident, and you are taken by ambulance to the hospital. You immediately call a car accident attorney, and he/she gets to work on your case as quickly as possible. You begin to get treatment for your injuries. Your car receives the $6,000.00 for the damages it sustained. Your vehicle is repaired, and everything is as good as new. 

Eventually, your injury claim is settled, and you are paid some money for your injuries. All is right in the world. Hopefully, you weren't catastrophically injured, your medical bills got paid, your car got fixed, and you have some additional money in your pocket. 

A few years later, you go to trade-in your vehicle. You look up the Kelly Blue Book value before you go to the car dealership and find that your car is worth $20,000.00. With this information in hand, you go to the car dealership to buy a new car. You are excited because you have all the information you need to make sure you finally win a battle with a car salesperson. You pick out the new car you want. The dealership takes your vehicle to be evaluated. After being appraised, the dealership informs you that your car is only worth $13,000.00 due to the accident. 

Stunned, you can barely talk, but you manage to ask why. The dealership shows you the numbers, and you are not happy. This fact scenario happens often (different amounts and sometimes trying to sell your car as opposed to trading it in, but we see this all the time). Your car suffered diminished value; the second the car was involved in the accident. Your vehicle may run the same way it did before the accident, and it may look the same, but unfortunately, it is not worth the same.

Your car suffered diminished value the second it was involved in the accident. Your car may run the same way it did prior to the accident and it make look the same but unfortunately, it is not worth the same. 

Diminished Value – Car Accidents

Diminished value (often referred to as "DV") is the economic loss in a property's value as a result of having been damaged. While diminished value can occur to most personal property, this blog will concentrate on the loss of value of your car after a car accident.  

Many people often overlook the loss of value their car sustains when it is involved in a car accident. Oftentimes, you do not think of that loss of value until it comes time for you to trade your car in or sell it. At that time, you realize that the car accident you were in (sometimes years prior) caused you economic harm that you were not compensated for.

Can you be compensated for the diminished value of your car when it is involved in an accident that you did not cause? The simple answer is yes, however, there are many variables that can turn this yes into a no.

For example, minimal damage to a 10-year-old car, in theory is compensable, but in reality is not. The amount of damage to a car, the type of damage to a car and condition (including age) of the car are important factors in determining whether a case can be prosecuted for diminished value after a car accident.   

Dealing with Insurance Companies – Diminished Value

If you thought negotiating with the insurance company for the injuries you sustained in your accident was difficult wait until you negotiate with them on your diminished value claim. You would think that the process is pretty simple, and it should be, but like many other issues, insurance companies make it as difficult as possible in hopes that you will either give up or take pennies on the dollar to simply “put this case behind you.”  

Some insurance companies use a biased, invalid formula, which only benefits them. The formula requires the insurance company to place an arbitrary cap on damages, apply a damage multiplier that reduces the amount of your diminished value claim and then reduces the amount of the claim again based upon the mileage on your car. Many attorneys have fought this analysis and won. Whereas some insurance companies will flat out deny your diminished value claim in hopes that you will simply go away.

Contact an Experienced Car Accident Attorney

Diminished value claims, while usually not as valuable as an injury claim, are very difficult to do on your own. They often require an expert to ensure that your diminished value claim is evaluated correctly.  

Retamar & Millian, P.A. is available to assist you on all your car accident related issues, including but not limited to your injury, property damage (car and other personal property) and diminished value claims.  

If you need assistance on any of the issues related to your car accident, contact Retamar & Millian, P.A. at 813-200-5894 for a free consultation. 

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