What Is A Diminished Value Claim?
In general, vehicles do not age well and retain their value unless they are scrupulously maintained – indeed, it is an old wives’ tale of sorts that when a newly-purchased car drives off the lot, it loses one-quarter of its value. There are few times that a car will drop so precipitously in value as it does after an auto accident – but if your accident was not caused by your own actions, you may be able to file what is known as a diminished value claim to seek the lost value of your vehicle.
Three Types Of Claims
A diminished value claim is usually made against the insurer of the person who allegedly caused your accident. However, Florida is a no-fault state, meaning that unless your injuries are “significant and permanent,” you may not seek damages from an allegedly negligent defendant. Instead, an injured person is intended to file a claim with their personal injury protection (PIP) insurance. However, that requirement is lifted for truly severe and life-changing injuries.
There are technically three discrete types of diminished value under the relevant law. First, immediate diminished value is the value of the vehicle directly after the accident, before any repairs have been made. Second, inherent diminished value is the reduction in value that simply happens because a car has a history of damage, even if the damage is repaired perfectly. Third, ‘repair-related’ diminished value, which happens when the repairs are done poorly. All of them are potentially actionable.
Do Not Hesitate
If you believe that your vehicle’s value has dropped after an accident, and you wish to try and reclaim that value, the first place to start is contacting the insurer of the person who allegedly caused your accident. However, be ready for the company to argue and dispute your claims, alleging a lower value lost and generally doubting the facts you provide. You may need to enlist the services of an appraiser in order to make your claim heard by the insurer.
In addition, be advised that the statute of limitations for this type of claim is only two years from the date of the accident – which sounds like a long time, but can go by extremely quickly. If you fail to file your claim by that date, you lose the right to file it forever. This may seem unfair, but the longer period of time goes by since an accident, the hazier memories grow and the more likely it is for documentary evidence to get lost.
Contact A Maitland Auto Accident Attorney
Being involved in an auto accident is never an enjoyable event in a person’s life, but if this has happened to you, it can help to try and get back the expenses you have incurred, with your car’s value only being one of them. A Maitland auto accident attorney from the Hornsby Law Group can help answer your questions about diminished value claims or any other type of auto accident issue. Call our office today to schedule a consultation.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0627/Sections/0627.737.html
