What to Do When Your Diminished Value Claim is Denied
File a diminished value claim, but your insurance company is giving you the run-around? Here are the steps you need to take to get what you deserve.
Was your diminished value claim recently denied?
If so, don’t throw in the towel just yet because you may be able to collect after all.
First, let’s briefly discuss the different types of diminished values to make sure you filed the right claim.
Types of Diminished Value Claims
Diminished values refer to the economic losses you suffer from damages to your car.
In order to claim on these particular losses, your case must fall into one of these three categories: immediate, inherent, and repair-related.
Immediate diminished values refer to economic losses suffered from a disparity in resale value before and after the damage has occurred.
Thus, you cannot seek out this type of claim if you have already taken your car to the shop.
Inherent diminished values are those economic losses you suffer as a result of your car’s damage history.
This claim assumes that your vehicle has already received professional repairs with a high level of satisfaction.
If the resale value of your vehicle drops as a result of unsatisfactory professional repairs, then you would need to file a repair-related diminished value claim.
Why Your Claim Was Denied
What if you followed every step correctly and were still denied recovery?
Chances are, this is the exact reason why you’re here. If you’ve been denied, review the following list of reasons before re-filing:
Denials Are Common
While you may have followed every step perfectly, auto insurance companies routinely deny diminished value claims.
This unscrupulous method is purposely used to motivate car owners to drop their claims so insurers can pay less in recoveries throughout the year.
Unfortunately, this tactic is a successful one as most people abandon their claims to spare themselves the frustration.
The Accident Is Your Fault
If it’s found that you’re at fault for your own vehicular damages, then your claim will most likely be denied.
According to the Insurance Information Institute, in all U.S. states except Michigan, car owners who are not the negligent party are eligible to claim diminished values. Under the law, it is the responsibility of the negligent party to “restore [your vehicle] to its pre-accident fair market value.”
What To Do When Your Claim Is Denied
When you’re in the right and your claim is denied, you have to come back with more reinforcements.
Get A Professional Appraisal
The first thing you need to do is seek out a professional appraisal of your vehicle.
This will provide your insurance company with a calculated sum backed by facts, details, and a solid reputation.
In fact, after an accident, insurance companies use their own appraisal services to strongarm you into accepting a lower recovery. Therefore, you have more room to negotiate by hiring your own reputable appraiser.
Hire A Lawyer
Instead of accepting an unfair claim denial, you can hire a lawyer to challenge your denial and get paid.
You can also receive a free case evaluation regardless of the logistics of your case.
Small diminished values may qualify for small claims courts, but if your denial concerns a large recovery, you may be eligible to sue through a practicing attorney.
To get started on your new claim, get your free case evaluation today or speak directly to a member of our legal team.