Don’t ignore your car’s diminished value after an accident

May 8, 2020

Don’t ignore your car’s diminished value after an accident

Even though being in a car accident is scary and devastating, but the accident itself is rarely the end of the story. After a car accident you will most likely be overwhelmed with phone calls from insurance agencies and the police which certainly adds a bit more stress to the whole situation of losing your car.

Depending on the state you live in, you might be entitled to receive compensation for the pain and suffering due to your accident. Some courts even state accident law are mostly focused on making the accident victim whole by ‘forcing’ the person at-fault pay.

But with all the things happening around the accident, how can someone know if they are treated fairly or not? Is there a way to know that the compensation offered will be sufficient?

After an accident, many accept only a portion of the compensation they are entitled to. And there are rarely situations where the person at-fault or the insurance company will offer a sum that will really make the victim whole.

Diminished value of your vehicle should be included into the compensation. We all know that cars that were in accidents or have an extensive repair history have a lower value. And this is something you can now check with a few clicks.

Some car dealership managers will diminish the value of your car by almost 30% after a simple frame damage repair. This means that if your car’s value is $20,000 you could ‘lose’ about $6,000 in value.

Diminished value claim

Claims for diminished value should be made as soon as possible. Just like with all other claims after a car accident, there is a certain statute of limitations. For Arizona, the statute of limitations is 2 years. So this means that the victim of the car accident has 2 years (after the accident) to submit a diminished value claim in order to be compensated for his/her loss. But there is one thing you need to be aware of.

When you’re dealing with settlements after your car accident you need to be aware that these settlements usually contain an exclusion clause which prevents you for making additional claims such as diminished value. So if you don’t file a claim upfront, you won’t be able to later on.

That’s why it’s important to handle all claims upfront and a skilled and experienced attorney will be able to help you with this. If you’ve been in an accident recently and would like to file a claim and be compensated, contact Schenk Podolsky and let us help you.